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Optimal Endowments Of Public Investment: An Empirical Analysis For The Spanish Regions

Author

Listed:
  • Óscar Bajo Rubio

    (Universidad de Castilla-La Mancha)

  • Carmen Díaz Roldán

    (Universidad de Castilla-La Mancha)

  • M.a Dolores Montávez Garcés

    (Universidad Pública de Navarra)

Abstract

. In this paper we try to find some evidence on the optimality in the provision of government capital in the Spanish regions, during the period 1965-1995. To this end, an optimality condition is derived from an optimization growth model, generalising the condition previously derived by Karras (1997) to the case of any kind of returns to scale over all inputs in the production function. Then, a simple production function is estimated, from which the marginal products of both private and government capital are computed. By comparing the estimates of those marginal products, we are able to infer whether the public capital stock in the Spanish regions is underprovided or not, relative to the private capital stock.

Suggested Citation

  • Óscar Bajo Rubio & Carmen Díaz Roldán & M.a Dolores Montávez Garcés, "undated". "Optimal Endowments Of Public Investment: An Empirical Analysis For The Spanish Regions," Working Papers 20-02 Classification-JEL , Instituto de Estudios Fiscales.
    • Handle: RePEc:hpe:wpaper:y:2002:i:20
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    References listed on IDEAS

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    Cited by:

    1. Jaime Alonso-Carrera & María Jesús Freire-Serén & Baltasar Manzano, 2004. "Rentabilidad social de la inversión pública española en infraestructuras," Hacienda Pública Española / Review of Public Economics, IEF, vol. 170(3), pages 81-103, september.
    2. Josep Lluís Carrion-i-Silvestre & Marta Espasa & Toni Mora, 2008. "Fiscal Decentralization and Economic Growth in Spain," Public Finance Review, , vol. 36(2), pages 194-218, March.
    3. Oscar Bajo-Rubio & Carmen Diaz-Mora & Carmen Diaz-Roldan, 2010. "Foreign Direct Investment and Regional Growth: An Analysis of the Spanish Case," Regional Studies, Taylor & Francis Journals, vol. 44(3), pages 373-382.
    4. Toni Mora, 2008. "The Relationship between the Capacity of the Spanish Central Government to Retain Tax-Revenue Shares and Interregional Inequality," Environment and Planning C, , vol. 26(3), pages 601-613, June.
    5. Palakiyèm Kpemoua, 2016. "Analyse de l'impact des infrastructures de transport sur la croissance économique du Togo," Working Papers hal-01389698, HAL.
    6. Boopen Seetanah, 2011. "Optimal endowments of transport investment: an empirical analysis for mauritius," Empirical Economics, Springer, vol. 40(3), pages 827-838, May.
    7. 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.
    8. Miguel Márquez & Julián Ramajo & Geoffrey Hewings, 2010. "A spatio-temporal econometric model of regional growth in Spain," Journal of Geographical Systems, Springer, vol. 12(2), pages 207-226, June.
    9. Antonio Morales & Pablo Brañas Garza, 2003. "Computational Errors in Guessing Games1," Economic Working Papers at Centro de Estudios Andaluces E2003/11, Centro de Estudios Andaluces.
    10. Carmen Díaz Roldán & Diego Martínez-López, 2005. "Inversión pública y crecimiento económico. Una revisión crítica con propuesta de futuro," Economic Working Papers at Centro de Estudios Andaluces E2005/10, Centro de Estudios Andaluces.
    11. Fedderke, J.W. & Bogetic, Z., 2009. "Infrastructure and Growth in South Africa: Direct and Indirect Productivity Impacts of 19 Infrastructure Measures," World Development, Elsevier, vol. 37(9), pages 1522-1539, September.
    12. Nikos Benos & Nikolaos Mylonidis & Stefania Zotou, 2017. "Estimating production functions for the US states: the role of public and human capital," Empirical Economics, Springer, vol. 52(2), pages 691-721, March.
    13. Juan A. Núñez-Serrano & Francisco J. Velázquez, 2017. "Is Public Capital Productive? Evidence from a Meta-analysis," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 39(2), pages 313-345.
    14. Melvin Ayogu, 0. "Infrastructure and Economic Development in Africa: A Review-super- †," Journal of African Economies, Centre for the Study of African Economies, vol. 16(suppl_1), pages -126.

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    More about this item

    Keywords

    Economic growth; government capital; regions.;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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