The Impact of Public Infrastructure on Canadian Multifactor Productivity Estimates
AbstractThis paper makes use of a growth accounting framework to examine the importance of public capital for private sector productivity growth. Most measures of multifactor productivity consider only the inputs of the business sector. This paper produces an alternate measure of multifactor productivity for the business sector that incorporates the impact of public capital. It uses the estimate of the elasticity of business sector output with respect to public capital derived from Macdonald (2008). Over the period, the conventional estimate of MFP growth averages 0.4% per year. About half of this growth is attributable to public capital.
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Bibliographic InfoPaper provided by Statistics Canada, Economic Analysis in its series The Canadian Productivity Review with number 2008021e.
Date of creation: 14 Jan 2009
Date of revision:
Economic accounts; Productivity accounts;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-01-24 (All new papers)
- NEP-BEC-2009-01-24 (Business Economics)
- NEP-EFF-2009-01-24 (Efficiency & Productivity)
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- Ben Dachis, 2013. "Cars, Congestion and Costs: A New Approach to Evaluating Government Infrastructure Investment," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 385, July.
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