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The Effect of Public Capital on the Productivity - An Analysis on the U.S. Highway Stock

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  • Daechang Kang

    (Korea Institute for International Economic Policy)

Abstract

This paper estimates the elasticities of highway stock and maintenance spending by the growth accounting method. In addition, the continuous effects of highway stock and maintenance spending were examined. Highway stock has a positive, substantially large, and continuous effect on the private productivity, while maintenance spending, as a factor enhancing the effectiveness of highway stock, has an insignificant and negligibly small positive effect. Therefore, the productivity boost effect from road service comes mainly from the amount of highway stock rather than the effectiveness through maintenance spending.

Suggested Citation

  • Daechang Kang, 2010. "The Effect of Public Capital on the Productivity - An Analysis on the U.S. Highway Stock," Korean Economic Review, Korean Economic Association, vol. 26, pages 177-201.
    • Handle: RePEc:kea:keappr:ker-20100630-26-1-08
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Public Capital; Productivity; Growth Accounting Method;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General

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