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“New” Public Investment and/or Public Capital Maintenance for Growth? The Canadian Experience

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Author Info
Pantelis Kalaitzidakis
Sarantis Kalyvitis

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Abstract

The article revisits the relationship between growth and public productive expenditures by investigating the growth impact of "new" public investment along with maintenance expenditures in public capital. We sketch out the importance of these components of public capital expenditures for growth and then use survey data from Canada to assess the impact of these variables on Canadian growth. We find evidence that the Canadian economy would benefit from a fall in total public capital expenditures and from a reallocation between new public investment and maintenance expenditures. We also identify the growth impact of the associated sectoral public capital expenditures. (JEL E22, E62, H21, H54) Copyright 2005, Oxford University Press.

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File URL: http://hdl.handle.net/10.1093/ei/cbi040
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Publisher Info
Article provided by Oxford University Press in its journal Economic Inquiry.

Volume (Year): 43 (2005)
Issue (Month): 3 (July)
Pages: 586-600
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Handle: RePEc:oup:ecinqu:v:43:y:2005:i:3:p:586-600

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Related research
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Find related papers by JEL classification:
E22 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Capital; Investment; Capacity
E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures

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This page was last updated on 2009-11-19.

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