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Review of literature on the productivity of public capital

  • Pellervo Hamalainen

    (Department of Economics, University of Turku, FINLAND)

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    This paper summarizes previous results on the productivity of public capital. In recent literature, Aschauer's (1989) estimate for the productivity of public capital is often considered too high and the size of the effect is still open to debate. However, the positive effect of public capital on the productivity of the private sector is quite widely accepted.

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    Paper provided by Aboa Centre for Economics in its series Discussion Papers with number 55.

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    Length: 19
    Date of creation: Oct 2009
    Date of revision:
    Handle: RePEc:tkk:dpaper:dp55
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    1. Teresa Garcia-Milà & Therese J. McGuire & Robert H. Porter, 1993. "The effect of public capital in state-level production functions reconsidered," Economics Working Papers 36, Department of Economics and Business, Universitat Pompeu Fabra.
    2. Evans, Paul & Karras, Georgios, 1994. "Is government capital productive? Evidence from a panel of seven countries," Journal of Macroeconomics, Elsevier, vol. 16(2), pages 271-279.
    3. David Alan Aschauer, 1997. "Output and Employment Effects of Public Policy," Macroeconomics 9711002, EconWPA.
    4. Dessus, Sebastien & Herrera, Remy, 2000. "Public Capital and Growth Revisited: A Panel Data Assessment," Economic Development and Cultural Change, University of Chicago Press, vol. 48(2), pages 407-18, January.
    5. David Aschauer, 1998. "Public Capital and Economic Growth: Issues of Quantity, Finance, and Efficiency," Macroeconomics 9805016, EconWPA.
    6. Salinas-Jimenez, M. del Mar, 2004. "Public infrastructure and private productivity in the Spanish regions," Journal of Policy Modeling, Elsevier, vol. 26(1), pages 47-64, January.
    7. Gramlich, Edward M, 1994. "Infrastructure Investment: A Review Essay," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1176-96, September.
    8. Antonio Estache, 1994. "World Development Report: Infrastructure for Development," ULB Institutional Repository 2013/44144, ULB -- Universite Libre de Bruxelles.
    9. 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.
    10. 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.
    11. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S71-102, October.
    12. G. Duggal, Vijaya & Saltzman, Cynthia & Klein, Lawrence R., 1999. "Infrastructure and productivity: a nonlinear approach," Journal of Econometrics, Elsevier, vol. 92(1), pages 47-74, September.
    13. 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.
    14. 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.
    15. David Aschauer, 1988. "Is public expenditure productive?," Staff Memoranda 88-7, Federal Reserve Bank of Chicago.
    16. Tom Björkroth & Anders Kjellman, 2000. "Public capital and private sector productivity - a Finnish perspective," Finnish Economic Papers, Finnish Economic Association, vol. 13(1), pages 28-44, Spring.
    17. Andreas Stephan, 2002. "Assessing the Contribution of Public Capital to Private Production: Evidence from the German Manufacturing Sector," Discussion Papers of DIW Berlin 315, DIW Berlin, German Institute for Economic Research.
    18. Rosina Moreno & Enrique López-Bazo, 2007. "Returns to Local and Transport Infrastructure under Regional Spillovers," International Regional Science Review, , vol. 30(1), pages 47-71, January.
    19. 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.
    20. Aaron Mehrotra & Timo Välilä, 2006. "Public Investment in Europe: Evolution and Determinants in perspective," Fiscal Studies, Institute for Fiscal Studies, vol. 27(4), pages 443-471, December.
    21. Olivier Cadot & Lars-Hendrik Röller & Andreas Stephan, 2002. "Contribution to Productivity or Pork Barrel? The Two Faces of Infrastructure Investment," CIG Working Papers FS IV 02-09, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
    22. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 407-37, May.
    23. Pedro R. D. Bom & Jenny Ligthart, 2008. "How Productive is Public Capital? A Meta-Analysis," CESifo Working Paper Series 2206, CESifo Group Munich.
    24. John A. Tatom, 1991. "Public capital and private sector performance," Review, Federal Reserve Bank of St. Louis, issue May, pages 3-15.
    25. Johanna Elisabeth Ligthart, 2000. "Public Capital and Output Growth in Portugal: An Empirical Analysis," IMF Working Papers 00/11, International Monetary Fund.
    26. Robert Ford & Pierre Poret, 1991. "Infrastructure and Private-Sector Productivity," OECD Economics Department Working Papers 91, OECD Publishing.
    27. Andrea Bassanini & Stefano Scarpetta & Philip Hemmings, 2001. "Economic Growth: The Role of Policies and Institutions: Panel Data. Evidence from OECD Countries," OECD Economics Department Working Papers 283, OECD Publishing.
    28. 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.
    29. Jan-Egbert Sturm & Gerard H. Kuper & Jakob de Haan,, 1996. "Modelling government investment and economic growth at the macro level: A review," Working Papers 29, Centre for Economic Research, University of Groningen and University of Twente.
    30. Romp, Ward & de Haan, Jakob, 2005. "Public capital and economic growth: a critical survey," EIB Papers 2/2005, European Investment Bank, Economics Department.
    31. Reino Hjerppe & Pellervo Hämäläinen & Jaakko Kiander & Matti Viren, 2007. "Do government expenditures increase private sector productivity?: Cross-country evidence," International Journal of Social Economics, Emerald Group Publishing, vol. 34(5), pages 345-360, May.
    32. Garcia-Mila, Teresa & McGuire, Therese J., 1992. "The contribution of publicly provided inputs to states' economies," Regional Science and Urban Economics, Elsevier, vol. 22(2), pages 229-241, June.
    33. Benhabib, Jess & Spiegel, Mark M., 1994. "The role of human capital in economic development evidence from aggregate cross-country data," Journal of Monetary Economics, Elsevier, vol. 34(2), pages 143-173, October.
    34. Alicia H. Munnell, 1992. "Policy Watch: Infrastructure Investment and Economic Growth," Journal of Economic Perspectives, American Economic Association, vol. 6(4), pages 189-198, Fall.
    35. Sergio Destefanis & Vania Sena, 2005. "Public capital and total factor productivity: New evidence from the Italian regions, 1970-98," Regional Studies, Taylor & Francis Journals, vol. 39(5), pages 603-617.
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