Spatial Competition and Accumulation of Public Capital
This paper examines the effect of public capital accumulation on private sectors' productivity in a general equilibrium model where a public capital, such as a transportation infrastructure, affects households' disutility of moving. The focus is on indirect channels through which it affects the productivity. The study finds that the accumulation of public capital does not necessarily enhance the productivity of private sectors when there are plenty of initial public capital or the productivity of public sectors is low. However, it also finds that there are cases where public capital accumulation improves social welfare even if it reduces the productivity.
|Length:||22,  p.|
|Date of creation:||Aug 2001|
|Date of revision:|
|Note:||August 13, 2001|
|Contact details of provider:|| Postal: 2-1 Naka, Kunitachi City, Tokyo 186-8603|
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- Sturm, Jan-egbert & Jacobs, Jan & Groote, Peter, 1999. "Output Effects of Infrastructure Investment in the Netherlands, 1853-1913," Journal of Macroeconomics, Elsevier, vol. 21(2), pages 355-380, April.
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- Alicia H. Munnell, 1990. "Why has productivity growth declined? Productivity and public investment," New England Economic Review, Federal Reserve Bank of Boston, issue Jan, pages 3-22.
- Fisher, Walter H & Turnovsky, Stephen J, 1998. "Public Investment, Congestion, and Private Capital Accumulation," Economic Journal, Royal Economic Society, vol. 108(447), pages 399-413, March.
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