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Nonlinear Effects of Public Capital in Japan: A Panel Threshold Regression Approach

Author

Listed:
  • Naoto Tanemoto

    (Graduate School of Economics, Kobe University)

  • Hinami Takai

    (Graduate School of Economics, Kobe University)

  • Tomomi Miyazaki

    (Graduate School of Economics, Kobe University)

Abstract

This study examines the nonlinear effects of public capital in Japan by using a panel threshold regression method. First, our empirical results confirm the threshold effects of public capital productivity in Japan. Second, we demonstrate that rural regions gradually become low productivity regions over time. These results imply that the consideration of threshold effects is essential for understanding nonlinearities in the level of public capital and its economic effects in Japan. JEL Classification: E24, E62, H30

Suggested Citation

  • Naoto Tanemoto & Hinami Takai & Tomomi Miyazaki, 2025. "Nonlinear Effects of Public Capital in Japan: A Panel Threshold Regression Approach," Discussion Papers 2516, Graduate School of Economics, Kobe University.
    • Handle: RePEc:koe:wpaper:2516
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    File URL: http://www.econ.kobe-u.ac.jp/RePEc/koe/wpaper/2025/2516.pdf
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    References listed on IDEAS

    as
    1. Mera, Koichi, 1973. "II. Regional production functions and social overhead capital: An analysis of the Japanese case," Regional and Urban Economics, Elsevier, vol. 3(2), pages 157-185, May.
    2. Tomomi Miyazaki, 2018. "Interactions between regional public and private investment: evidence from Japanese prefectures," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(1), pages 195-211, January.
    3. Gilbert Colletaz & Christophe Hurlin, 2006. "Threshold Effects in the Public Capital Productivity: an International Panel Smooth Transition Approach," Post-Print halshs-00257487, HAL.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General

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