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Public Capital in the Private Sector of Italian Economy

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  • Salvatore Amico Roxas
  • Antonio Cristofaro
  • Giuseppe Piroli

Abstract

This paper investigates how the services of public capital affect the different sectors of private economy in Italy. For this purpose, we use a trans-logarithmic cost function which includes infrastructure’s services as a quasi-fixed free input. This approach allows to measure the effects of public capital in terms of cost reduction, productivity and distortion in the use of private inputs of production. We find that that the effects vary across industries and that major benefits are observed in Manufacturing and Energy. The sectors that obtain less benefits are Trade and Transport.

Suggested Citation

  • Salvatore Amico Roxas & Antonio Cristofaro & Giuseppe Piroli, 2012. "Public Capital in the Private Sector of Italian Economy," EERI Research Paper Series EERI_RP_2012_19, Economics and Econometrics Research Institute (EERI), Brussels.
    • Handle: RePEc:eei:rpaper:eeri_rp_2012_19
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    More about this item

    Keywords

    Public capital; economic sectors; SURE.;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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