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Public Capital Stock and State Productivity Growth: Further Evidence from an Error Components Model

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  • Baltagi, Badi H
  • Pinnoi, Nat

Abstract

The contribution of different types of public infrastructure on private production is investigated using time-series of cross-section data for the 48 contiguous states over the period 1970-86. A Cobb-Douglas production function is estimated with unobserved state-specific effects. Measurement errors in public capital stock and its components are detected and rectified.

Suggested Citation

  • Baltagi, Badi H & Pinnoi, Nat, 1995. "Public Capital Stock and State Productivity Growth: Further Evidence from an Error Components Model," Empirical Economics, Springer, vol. 20(2), pages 351-359.
  • Handle: RePEc:spr:empeco:v:20:y:1995:i:2:p:351-59
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