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Abstract

This paper contributes to the empirical literature on public capital effects on Spanish regions productivity by applying an alternative approach to examine its influence based on a non-parametric FDH production technology with variable scaling parameters (VP-FDH) proposed in Kersten and Vanden Eeckaut (1999). This technique has significant advantages for regional comparisons of productivity and, more generally, wherever the assumption of convexity for the production set is not likely to be appropriate. My results show that public capital has a significant impact in the less developed regions. When I disaggregate public capital in the «so-called» core and non-core infrastructures I find that the first type of infrastructure have developed an important role in the majority of periods.

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Bibliographic Info

Article provided by IEF in its journal Hacienda Pública Española/Revista de Economía Pública.

Volume (Year): 171 (2004)
Issue (Month): 4 (december)
Pages: 57-74

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Handle: RePEc:hpe:journl:y:2004:v:171:i:4:p:57-74

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Related research

Keywords: cross-regions productivity; technological efficiency; public capital; convexity.;

Find related papers by JEL classification:

• C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
• O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

References

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1. KERSTENS, Kristiaan & VANDEN EECKAUT, Philippe, 1997. "Estimating returns to scale using nonparametric deterministic technologies : a new method based on goodness-of-fit," CORE Discussion Papers 1997013, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
   
   • Kerstens, Kristiaan & Vanden Eeckaut, Philippe, 1999. "Estimating returns to scale using non-parametric deterministic technologies: A new method based on goodness-of-fit," European Journal of Operational Research, Elsevier, vol. 113(1), pages 206-214, February.
2. Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output per Worker than Others?," NBER Working Papers 6564, National Bureau of Economic Research, Inc.
   
   • Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output Per Worker Than Others?," The Quarterly Journal of Economics, MIT Press, vol. 114(1), pages 83-116, February.
3. Delorme, Charles Jr. & Thompson, Herbert Jr. & Warren, Ronald Jr., 1999. "Public Infrastructure and Private Productivity: A Stochastic-Frontier Approach," Journal of Macroeconomics, Elsevier, vol. 21(3), pages 563-576, July.
4. John K. Mullen & Martin Williams & Ronald L. Moomaw, 1996. "Public capital stock and interstate variations in manufacturing efficiency," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 15(1), pages 51-67.
5. Gramlich, Edward M, 1994. "Infrastructure Investment: A Review Essay," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1176-96, September.
6. Ezequiel Uriel Jiménez & Francisco Pérez García & Matilde Mas Ivars & Joaquín Maudos Villarroya, 1993. "Capital Público Y Productividad De La Economía Espanola," Working Papers. Serie EC 1993-08, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
7. Mercedes Gumbau-Albert, 2000. "Efficiency and technical progress: sources of convergence in the Spanish regions," Applied Economics, Taylor and Francis Journals, vol. 32(4), pages 467-478.
8. Joaquín Maudos Villarroya & José Manuel Pastor Monsálvez & Lorenzo Serrano Martínez, 1997. "Convergencia en las regiones españolas: cambio técnico, eficiencia y productividad," Working Papers. Serie EC 1997-20, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
9. Joaquin Maudos & Jose Pastor & Lorenzo Serrano, 2000. "Efficiency and Productive Specialization: An Application to the Spanish Regions," Regional Studies, Taylor and Francis Journals, vol. 34(9), pages 829-842.
10. Ramón María-Dolores; & Mari Carmen Puigcerver, . "An Empirical Study of Growth in Spanis Regions: is it Exogenous?," Studies on the Spanish Economy 144, FEDEA.
11. Douglas Gollin, 2002. "Getting Income Shares Right," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 458-474, April.
    
    • Douglas Gollin, 2001. "Getting Income Shares Right," Department of Economics Working Papers 2001-11, Department of Economics, Williams College.

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