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The Interaction of Public and Private Capital

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  • Colin J Hunt

Abstract

This paper addresses the interaction of public and private capital stocks. We show for most developed countries that there is a long-term equilibrium relation between public and private capital. We find that imbalances in the relation of public and private capital are most likely to be corrected through a public capital adjustment. Private capital tends towards weak exogeneity. The evidence presented suggests that public investment is more likely to be enticed by private investment rather than serve to crowd out private investment activity.

Suggested Citation

  • Colin J Hunt, 2011. "The Interaction of Public and Private Capital," Post-Print hal-00675397, HAL.
    • Handle: RePEc:hal:journl:hal-00675397
    DOI: 10.1080/00036846.2010.522523
    Note: View the original document on HAL open archive server: https://hal.science/hal-00675397
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    References listed on IDEAS

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