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Econometric testing of spatial productivity spillovers from public capital

  • Antonio Alvarez

    ()

    (Universidad de Oviedo)

  • Carlos Arias

    ()

    (Universidad de León)

  • Luis Orea

    (Universidad de Oviedo)

In this paper we review two different approaches followed in the empirical literature to test for the existence of public capital spillovers. Additionally, we explore the role played by an additive aggregator of public capital in neighboring regions versus the multiplicative aggregator used previously in the literature. In the empirical application we compare the different methodologies using a panel data set of the 47 mainland Spanish provinces. We do not find evidence of the existence of spillover effects of public infrastructure.

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Article provided by IEF in its journal Hacienda Pública Española/Revista de Economía Pública.

Volume (Year): 178 (2006)
Issue (Month): 3 (September)
Pages: 9-21

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Handle: RePEc:hpe:journl:y:2006:v:178:i:3:p:9-21
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  1. Roberto Ezcurra & Carlos Gil & Pedro Pascual & Manuel Rapún, 2005. "Public capital, regional productivity and spatial spillovers," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 39(3), pages 471-494, 09.
  2. Ramon Moreno & Bharat Trehan, 1997. "Location and the growth of nations," Working Papers in Applied Economic Theory 97-02, Federal Reserve Bank of San Francisco.
  3. David Aschauer, 1988. "Is public expenditure productive?," Staff Memoranda 88-7, Federal Reserve Bank of Chicago.
  4. Douglas Holtz-Eakin & Amy Ellen Schwartz, 1995. "Spatial Productivity Spillovers from Public Infrastructure: Evidence from State Highways," NBER Working Papers 5004, National Bureau of Economic Research, Inc.
  5. Alicia H. Munnell & Leah M. Cook, 1990. "How does public infrastructure affect regional economic performance?," New England Economic Review, Federal Reserve Bank of Boston, issue Sep, pages 11-33.
  6. Mercedes Gumbau Albert & Joaquín Maudos Villarroya & Pedro Cantos, 2002. "Transport Infrastructures And Regional Growth: Evidence Of The Spanish Case," Working Papers. Serie EC 2002-27, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  7. Ratner, Jonathan B., 1983. "Government capital and the production function for U.S. private output," Economics Letters, Elsevier, vol. 13(2-3), pages 213-217.
  8. Matilde Mas & Joaquin Maudos & Francisco Perez & Ezequiel Uriel, 1996. "Infrastructures and Productivity in the Spanish Regions," Regional Studies, Taylor & Francis Journals, vol. 30(7), pages 641-649.
  9. Rosina Moreno Serrano & Manuel Artis Ortuno & Enrique Lopez Bazo & Jordi Surinach Caralt, 1997. "Evidence on the complex link between infrastructure and regional growth," Working Papers in Economics 19, Universitat de Barcelona. Espai de Recerca en Economia.
  10. Gramlich, Edward M, 1994. "Infrastructure Investment: A Review Essay," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1176-96, September.
  11. Case, Anne C. & Rosen, Harvey S. & Hines, James Jr., 1993. "Budget spillovers and fiscal policy interdependence : Evidence from the states," Journal of Public Economics, Elsevier, vol. 52(3), pages 285-307, October.
  12. Pereira, Alfredo Marvao & Roca-Sagales, Oriol, 2003. "Spillover effects of public capital formation: evidence from the Spanish regions," Journal of Urban Economics, Elsevier, vol. 53(2), pages 238-256, March.
  13. 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.
  14. Alvarez, Antonio & Arias, Carlos & Orea, Luis, 2004. "The Measurement of Spatial Productivity Spillovers from Public Capital," Efficiency Series Papers 2004/08, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
  15. Ezequiel Uriel Jiménez & Francisco Pérez García & Matilde Mas Ivars & Joaquín Maudos Villarroya, 1993. "Capital Público Y Productividad De La Economía Espanola," Working Papers. Serie EC 1993-08, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  16. Maria Jesus Delgado & Inmaculada Alvarez, 2007. "Network infrastructure spillover in private productive sectors: evidence from Spanish high capacity roads," Applied Economics, Taylor & Francis Journals, vol. 39(12), pages 1583-1597.
  17. Catherine J. Morrison & Amy Ellen Schwartz, 1992. "State Infrastructure and Productive Performance," NBER Working Papers 3981, National Bureau of Economic Research, Inc.
  18. Jeffrey P. Cohen & Catherine J. Morrison Paul, 2004. "Public Infrastructure Investment, Interstate Spatial Spillovers, and Manufacturing Costs," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 551-560, May.
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