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Optimal Endowments Of Public Investment: An Empirical Analysis For The Spanish Regions

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Author Info
Óscar Bajo Rubio (Universidad de Castilla-La Mancha)
Carmen Díaz Roldán (Universidad de Castilla-La Mancha)
M.a Dolores Montávez Garcés (Universidad Pública de Navarra)

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Abstract

. In this paper we try to find some evidence on the optimality in the provision of government capital in the Spanish regions, during the period 1965-1995. To this end, an optimality condition is derived from an optimization growth model, generalising the condition previously derived by Karras (1997) to the case of any kind of returns to scale over all inputs in the production function. Then, a simple production function is estimated, from which the marginal products of both private and government capital are computed. By comparing the estimates of those marginal products, we are able to infer whether the public capital stock in the Spanish regions is underprovided or not, relative to the private capital stock.

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Paper provided by Instituto de Estudios Fiscales in its series Working Papers with number 20-02 Classification-JEL : E62, H54, O40..

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Handle: RePEc:hpe:wpaper:y:2002:i:20

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Keywords: Economic growth; government capital; regions.;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Karras, Georgios, 1997. "Is Government Investment Underprovided in Europe? Evidence from a Panel of Fifteen Countries," Economia Internazionale / International Economics, Camera di Commercio di Genova, vol. 50(2), pages 223-235.
  2. Jan-Egbert Sturm & Gerard H. Kuper & Jakob de Haan,, 1996. "Modelling government investment and economic growth at the macro level: A review," Working Papers 29, Centre for Economic Research, University of Groningen and University of Twente. [Downloadable!]
  3. Berndt, Ernst R & Hansson, Bengt, 1992. " Measuring the Contribution of Public Infrastructure Capital in Sweden," Scandinavian Journal of Economics, Blackwell Publishing, vol. 94(0), pages S151-68, Supplemen.
  4. Aschauer, David Alan, 1989. "Is public expenditure productive?," Journal of Monetary Economics, Elsevier, vol. 23(2), pages 177-200, March. [Downloadable!] (restricted)
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  5. Holtz-Eakin, Douglas, 1994. "Public-Sector Capital and the Productivity Puzzle," The Review of Economics and Statistics, MIT Press, vol. 76(1), pages 12-21, February. [Downloadable!] (restricted)
  6. Carmela Martin & Francisco J. Velazquez., 2001. "An Assessment of Real Convergence of Less Developed EU Members: Lessons for the CEEC Candidates," European Economy Group Working Papers 5, European Economy Group. [Downloadable!]
  7. 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)
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  8. Oscar Bajo & Carmen DÌaz Rold·n & Maria Dolores Montavez, 1999. "Fiscal Policy and Growth Revisited: The Case of The Spanish Regions," Documentos de Trabajo - Lan Gaiak Departamento de Economía - Universidad Pública de Navarra 9904, Departamento de Economía - Universidad Pública de Navarra. [Downloadable!]
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  9. Angel de la Fuente & Vicente Salas Fumás, . "On the sources of convergence: A close look at the Spanish regions," Studies on the Spanish Economy 01, FEDEA. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Jaime Alonso-Carrera & María Jesús Freire-Serén & Baltasar Manzano, 2004. "Rentabilidad social de la inversión pública española en infraestructuras," Hacienda Pública Española, IEF, vol. 170(3), pages 81-103, september. [Downloadable!]
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  2. Antonio Morales & Pablo Brañas Garza, 2003. "Computational Errors in Guessing Games1," Economic Working Papers at Centro de Estudios Andaluces E2003/11, Centro de Estudios Andaluces. [Downloadable!]
  3. Javier Capó Parrilla & Francisco Gómez García, . "Nuevas Estimaciones Del Pleno Empleo De Las Regiones Españolas," Working Papers 18-05 Classification-JEL , Instituto de Estudios Fiscales. [Downloadable!]
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