C. Alicia Avilés Zugasti () (Dpto. Teoría e Historia Económica, Facultad de Ciencias Económicas y Empresariales, Universidad de Málaga, 29013 Málaga, Spain Dpto. Economía Aplicada , Universidad de Málaga, 29013 Málaga, Spain) Rosario Gómez García () (Dpto. Teoría e Historia Económica, Facultad de Ciencias Económicas y Empresariales, Universidad de Málaga, 29013 Málaga, Spain Dpto. Economía Aplicada , Universidad de Málaga, 29013 Málaga, Spain) José Sánchez Maldonado () (Dpto. Teoría e Historia Económica, Facultad de Ciencias Económicas y Empresariales, Universidad de Málaga, 29013 Málaga, Spain Dpto. Economía Aplicada , Universidad de Málaga, 29013 Málaga, Spain)
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This paper examines the impact of public infrastructures on the performance of Spanish private business at a disaggregated industry level. We use duality theory to recover the productivity effects of public capital by calculating the cost saving effects that are associated to public services. Using a translog cost function we present panel estimates for 14 Spanish industries during the period 1980-1991. Our results strongly suggest that public capital formation can be considered to be an instrument to improve competitiveness by reducing production costs. However, the results also indicate that there is a technologically induced labor saving effect through higher public investment. Furthermore, our estimates suggest that a distinction among industries is of importance because the effects of public infrastructures vary across industries considerably.
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Find related papers by JEL classification: C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data D21 - Microeconomics - - Production and Organizations - - - Firm Behavior H41 - Public Economics - - Publicly Provided Goods - - - Public Goods H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
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