Is public expenditure really productive? New evidence for the US and the Netherlands
AbstractThis paper reviews empirical evidence for the United States on the impact of the public capital stock on productivity. On econometric grounds it is argued that most previous research is flawed. If the well-known model of Aschauer is estimated in first differences - which is necessary as the variables used are neither stationary nor cointegrated - the model breaks down entirely. Similar results are found for the Netherlands.
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Bibliographic InfoPaper provided by Centre for Economic Research, University of Groningen and University of Twente in its series Working Papers with number 20.
Date of creation: Apr 1994
Date of revision:
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- Sturm, Jan Egbert & de Haan, Jakob, 1995. "Is public expenditure really productive?: New evidence for the USA and The Netherlands," Economic Modelling, Elsevier, vol. 12(1), pages 60-72, January.
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