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Efficiency in the provision of public and private capital in 15 OECD countries

Author

Listed:
  • José E. Boscá

    (Universidad de Valencia)

  • Antonio Cutanda

    (Universidad de Valencia)

  • Javier Escribá

    (Universidad de Valencia)

Abstract

In this paper we use a sample of 15 OECD countries to examine whether provision of public and private capital satisfies conditions of intertemporal efficiency over the 1970-1995 period. We find robust evidence that private and public capital have followed criteria of efficient resource allocation in all countries. The estimated output elasticities of private and public capital display little variation across countries, and reach mean values of 0.19 and 0.055. Consequently, average rates of return to both factors are estimated at about 5-5.5%. All along we estimate a positive and significant intertemporal elasticity of substitution of consumption in all countries.

Suggested Citation

  • José E. Boscá & Antonio Cutanda & Javier Escribá, 2006. "Efficiency in the provision of public and private capital in 15 OECD countries," Investigaciones Economicas, Fundación SEPI, vol. 30(2), pages 207-237, May.
    • Handle: RePEc:iec:inveco:v:30:y:2006:i:2:p:207-237
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    2. Miguel Gómez-Antonio & Ana Angulo Garijo, 2012. "Evaluating the Effect of Public investment on Productivity Growth Using an Urban Economics Approach for the Spanish Provinces," International Regional Science Review, , vol. 35(4), pages 389-423, October.

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    More about this item

    Keywords

    Infrastructures; private capital; investment;
    All these keywords.

    JEL classification:

    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures

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