Dynamics of Public Infrastructure, Industrial Productivity and Profitability
A restricted equilibrium framework is utilized to estimate the contribution of public investment in infrastructure to private sector profitability. A restricted cost function in translog form which treats labor and materials as variable inputs and private capital and public sector capital stock in transportation, communications and electricity as quasi-fixed inputs is specified. A system of non-linear equations comprising variable cost function and derived input demand equations is estimated using data from 1970 to 1987 for twenty-six Mexican three-digit manufacturing industries. The divergence of private and public capital stocks from their static equilibrium levels is estimated. The net rate of return to fixed factors is also calculated. Estimates of allocative efficiency are derived. The study further provides estimates of short-run and long-run scale economies, output elasticity of factors, measures of productivity growth and technical change. Economic significance and policy implications of the findings are also presented. Copyright 1992 by MIT Press.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 74 (1992)
Issue (Month): 1 (February)
|Contact details of provider:|| Web page: http://mitpress.mit.edu/journals/|
|Order Information:||Web: http://mitpress.mit.edu/journal-home.tcl?issn=00346535|
When requesting a correction, please mention this item's handle: RePEc:tpr:restat:v:74:y:1992:i:1:p:28-36. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kristin Waites)
If references are entirely missing, you can add them using this form.