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Econometric testing of spatial productivity spillovers from public capital

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Author Info
Antonio Alvarez () (Universidad de Oviedo)
Carlos Arias () (Universidad de León)
Luis Orea (Universidad de Oviedo)

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Abstract

In this paper we review two different approaches followed in the empirical literature to test for the existence of public capital spillovers. Additionally, we explore the role played by an additive aggregator of public capital in neighboring regions versus the multiplicative aggregator used previously in the literature. In the empirical application we compare the different methodologies using a panel data set of the 47 mainland Spanish provinces. We do not find evidence of the existence of spillover effects of public infrastructure.

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

Volume (Year): 178 (2006)
Issue (Month): 3 (September)
Pages: 9-21
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Handle: RePEc:hpe:journl:y:2006:v:178:i:3:p:9-21

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Related research
Keywords: Public capital public infrastructure spatial spillovers.

Find related papers by JEL classification:
H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes
R53 - Urban, Rural, and Regional Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock

References listed on IDEAS
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  1. Ratner, Jonathan B., 1983. "Government capital and the production function for U.S. private output," Economics Letters, Elsevier, vol. 13(2-3), pages 213-217. [Downloadable!] (restricted)
  2. Aschauer, David Alan, 1989. "Is public expenditure productive?," Journal of Monetary Economics, Elsevier, vol. 23(2), pages 177-200, March. [Downloadable!] (restricted)
    Other versions:
  3. Alicia H. Munnell & Leah M. Cook, 1990. "How does public infrastructure affect regional economic performance?," New England Economic Review, Federal Reserve Bank of Boston, issue Sep, pages 11-33.
    Other versions:
  4. Matilde Mas & Joaquín Maudos & Francisco Pérez & Ezequiel Uriel, 1996. "Infrastructures and Productivity in the Spanish Regions," Regional Studies, Taylor and Francis Journals, vol. 30(7), pages 641-649, November. [Downloadable!] (restricted)
  5. Morrison, Catherine J & Schwartz, Amy Ellen, 1996. "State Infrastructure and Productive Performance," American Economic Review, American Economic Association, vol. 86(5), pages 1095-1111, December. [Downloadable!] (restricted)
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  6. Douglas Holtz-Eakin & Amy Ellen Schwartz, 1995. "Spatial Productivity Spillovers from Public Infrastructure: Evidence from State Highways," NBER Working Papers 5004, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. Ramon Moreno & Bharat Trehan, 1997. "Location and the growth of nations," Working Papers in Applied Economic Theory 97-02, Federal Reserve Bank of San Francisco. [Downloadable!]
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  8. Gramlich, Edward M, 1994. "Infrastructure Investment: A Review Essay," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1176-96, September. [Downloadable!] (restricted)
  9. Pereira, Alfredo Marvao & Roca-Sagales, Oriol, 2003. "Spillover effects of public capital formation: evidence from the Spanish regions," Journal of Urban Economics, Elsevier, vol. 53(2), pages 238-256, March. [Downloadable!] (restricted)
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  10. Roberto Ezcurra & Carlos Gil & Pedro Pascual & Manuel Rapún, 2005. "Public capital, regional productivity and spatial spillovers," The Annals of Regional Science, Springer, vol. 39(3), pages 471-494, 09. [Downloadable!] (restricted)
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