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An empirical approach to public capital, infrastructure, and economic activity: A critical review

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  • Duran-Fernandez, Roberto
  • Santos, Georgina

Abstract

The economic literature recognises the importance of public capital – commonly associated to infrastructure – as an additional factor in the production process, along with labour and private capital. This paper presents a critical review of the latest research assessing the link between public capital and national income from different perspectives. It is shown that empirical studies have been relatively successful in evidencing the importance of public capital on economic activity. However, more research in this field is needed, as there are still important caveats to be looked into.

Suggested Citation

  • Duran-Fernandez, Roberto & Santos, Georgina, 2014. "An empirical approach to public capital, infrastructure, and economic activity: A critical review," Research in Transportation Economics, Elsevier, vol. 46(C), pages 3-16.
    • Handle: RePEc:eee:retrec:v:46:y:2014:i:c:p:3-16
    DOI: 10.1016/j.retrec.2014.09.001
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    3. Ogbaro, Eyitayo O., 2019. "Threshold Effects of Institutional Quality in the Infrastructure-Growth Nexus," Journal of Quantitative Methods, University of Management and Technology, Lahore, Pakistan, vol. 3(2), pages 45-61.
    4. Vetlov, Igor & Ferdinandusse, Marien & de Jong, Jasper & Funda, Josip, 2017. "The effect of public investment in Europe: a model-based assessment," Working Paper Series 2021, European Central Bank.

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    More about this item

    Keywords

    Public capital; Infrastructure; National income; National product;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures

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