Effects Of Public Infrastructure Research Articles

The Effect of Public Infrastructure on Cost Structure and Performance of Chinese Provinces*

This paper estimates a translog cost function for 29 Chinese provinces between 1979 and 2018. The results imply that investment in public infrastructure reduces costs in all provinces. Comparing the estimated rate of return to infrastructure with the rate of return to private capital, our results indicate underinvestment for the initial period after the economic reforms; however, after 2010 our results show overinvestment in infrastructure. Infrastructure capital is a substitute input to labor, private capital and intermediate inputs. Finally, public infrastructure growth contributes positively to labor and total factor productivity growth, but the effect is small. The growth of private capital and intermediate inputs are the most important factors that boost the growth of labor productivity.

Measuring the spillover effects of public capital: a bi-regional structural vector autoregressive analysis

In the framework of approaches to assessing the impact of public capital on economic growth, this paper estimates the dynamic effects of public infrastructure for the regions of Spain using a structural vector autoregressive (S-VAR) method. Methodologically, the main contribution is the proposal of a novel form (through bi-regional models) of estimating the spillover effects of one-time innovations in the public capital installed in a given region on the economic growth of the other regions of the country. From a policy perspective, the results highlight how these new models could contribute to the allocation of public investment in order to promote balanced regional growth, and provide new insights into the analysis of regional economic growth processes.

Public Technology Infrastructure, R&D Sourcing, and Research Joint Ventures

In this paper, we define public technology infrastructure to mean public resources that bring new R&D into existence. Examples are public research that yields knowledge spillovers and government contracts that broker new research. Using this definition we explore the effect of public infrastructure on cooperative R&D, especially R&D sourcing and research joint ventures (RJVs). Our findings strongly suggest that public infrastructure promotes cooperative R&D. We begin by studying the role of federal laboratories in R&D sourcing by private laboratories, finding that sourcing increases as a result. Then we examine patents arising from RJVs sponsored by the Advanced Technology Program (ATP). We find that R&D subsidies as well as difficulty and novelty increase patents produced by the RJVs. Contractual oversight by ATP has no direct effect but an indirect effect appears to exist, since firms value ATP oversight more highly for more difficult and novel projects, and these produce more patents.

ECONOMIC PERFORMANCE AND PUBLIC INFRASTRUCTURE: AN APPLICATION TO GREEK MANUFACTURING

ABSTRACTTo comprehend the impact of public infrastructure on economic performance this paper provides a measure of productivity growth as derived from duality theory. This productivity growth is decomposed into the components of technical change, returns to scale and the effects of public infrastructure, the variable of our interest. In an application, we opt for Greek manufacturing so as to investigate whether the decline in its growth rate is partly explained by public infrastructure. Despite some variation in the estimation results of shadow shares across industries, public infrastructure asserts a cost saving effect in most industries, though it also appears that traditional labour‐intensive industries with lower level of technological advancement do not benefit from the provision of public infrastructure. The estimation results further demonstrate that while public infrastructure enhanced productivity growth over the sample period for most industries, low infrastructure investment in the 1970s and the 1980s undermined productivity growth.

Land use and first birth timing in an agricultural setting

The dramatic changes in the earth’s landscape have prompted increased interest in the links between population, land use, and land cover. Previous research emphasized the notion of population pressure (population pressure increases demands on natural resources causing changes in land use), overlooking the potentially important effects of changes in land use on humans. Using multiple data sets from the Chitwan Valley Family Study in Nepal, we test competing hypotheses about the impact of land use on first birth timing. We argue that while agricultural land should encourage early childbearing, land area devoted to public infrastructure should discourage it. The results show that individuals from neighborhoods with larger proportions of land under agriculture experienced first birth at rates higher than those from neighborhoods with smaller proportions. On the other hand, individuals from neighborhoods with larger proportions of land under public infrastructure experienced first birth at rates lower than those from neighborhoods with smaller proportions. However, the effects of public infrastructure are not as strong as the land area devoted to agriculture.

How Productive Is Infrastructure? A New Approach and Evidence from Rural India

There have been competing arguments about the effect of public infrastructure on productivity. Level‐based and debate‐based regressions often lead to different estimates. To help reconcile this difference, this article applies the GMM method to first test for causality to check for length of lagged relationships and the existence of reverse causality before specifying a final model and deciding the estimation procedure. This approach is illustrated using a panel data set for India. The results show that infrastructure development in India is productive, providing supporting evidence to reverse the trend of declining investment in rural infrastructure.

Effects of Public Infrastructure on Cost Structure and Productivity in the Private Sector

This paper examines the effects of public infrastructure on the cost structure and productivity in the private sector in Australia. Translog cost functions incorporating public capital infrastructure are estimated for the aggregate private sector as well as for seven broad industry groups using annual time series data for 1968/69–1995/96. The effects of public infrastructure on productivity are measured in terms of both cost‐saving and output‐augmenting measures. The empirical results suggest that public infrastructure has a positive and significant impact on productivity in private sector industries. Public capital serves as a substitute for both private capital and labour. The rates of return to public capital are significant and vary over the sample period.

Public infrastructure and productivity growth in Greek agriculture

AbstractRecent research has focused on the effect of public infrastructure on economic performance. In this paper, a model of Greek agriculture's technology and behaviour is constructed based on the dual cost function framework. The model provides a decomposition of productivity growth into the components technical change, returns to scale, and public infrastructure. The empirical estimates indicate that public infrastructure investment provides a significant return to agriculture and augments productivity growth. Over the period 1960–1995, the impact of public infrastructure on productivity growth in livestock and crop production is found to be positive, although it has been declining since the late 1970s. These results strongly suggest that a decline in public infrastructure investment can partly explain the observed decline in the productivity growth of Greek agriculture in the 1980s.

Public infrastructure and productivity growth in Greek agriculture

Recent research has focused on the effect of public infrastructure on economic performance. In this paper, a model of Greek agriculture’s technology and behaviour is constructed based on the dual cost function framework. The model provides a decomposition of productivity growth into the components technical change, returns to scale, and public infrastructure. The empirical estimates indicate that public infrastructure investment provides a significant return to agriculture and augments productivity growth. Over the period 1960–1995, the impact of public infrastructure on productivity growth in livestock and crop production is found to be positive, although it has been declining since the late 1970s. These results strongly suggest that a decline in public infrastructure investment can partly explain the observed decline in the productivity growth of Greek agriculture in the 1980s.

The Effect of Public Infrastructure on the Private Productive Sector of Spanish Regions

In this paper we analyze the effect of infrastructure on the cost and productivity performance of the private productive sector of Spanish regions over the period 1980–1993. We use a dual approach based on cost functions that allows us to recover the usual parameters estimated with production functions. In addition, we obtain rates of return and cost elasticities of production factors at the regional level. Our framework explicitly considers that some factors are quasi‐fixed and their volume can differ from their optimal endowment levels. Our results indicate that the public sector has contributed significantly to enhance productivity and reduce costs in the private sector of almost every Spanish region. Nevertheless, there is still scope for the government to continue its investment efforts, given that there remains an appreciable gap between observed and optimal public capital, and we find that in the long run, public capital promotes private investment.

The effects of public infrastructure on the cost structure of Spanish industries

This paper examines the impact of public infrastructures on the performance of Spanish private business at a disaggregated industry level. We use duality theory to recover the productivity effects of public capital by calculating the cost saving effects that are associated to public services. Using a translog cost function we present panel estimates for 14 Spanish industries during the period 1980–1991. Our results strongly suggest that public capital formation can be considered to be an instrument to improve competitiveness by reducing production costs. However, the results also indicate that there is a technologically induced labor saving effect through higher public investment. Furthermore, our estimates suggest that a distinction among industries is of importance because the effects of public infrastructures vary across industries considerably.

Langfristige Wirkungen öffentlicher Investitionen –Theoretische und empirische Aspekte –

Abstract Macroeconomic theory suggests that public capital investment makes a significant contribution to economic growth. Applying an error correction model to data series for Germany shows, however, that increases in public infrastructure capital reduce private sector costs only in a negligible way. Moreover, it is demonstrated that conditional demand functions can only provide for very restricted predictions of how additional public investment outlays affect the demand for labor and private capital. Empirical estimations of productivity effects of public infrastructure usually do not account for the way government activity is financed. Neglecting tax or debt financing, may, however, entail a misspecification of the econometric equations and a misinterpretation of the empirical results. Using a simple neoclassical growth model it is shown that the productivity of public capital investment does not per se justify deficit financing. In economic terms, additional public investment spending is only reasonable if, at the margin, public capital investment is more productive than private capital investment.

Public Infrastructure and State Economic Development

The effect of public infrastructure on long-run economic performance has been actively debated in the academic literature and public policy circles. A comparison of the divergent results in this literature is difficult because studies use different data, production functions, and statistical procedures. A major point of contention is that the studies most favorable toward infrastructure investment ignore differences in state production functions. This study attempts to clarify the literature by using Munnell's original data, but also using estimation techniques that control for cross-state differences in production functions. The results confirm that the strong original findings were derived from poor estimation techniques.

The Effects of Public Infrastructure and R & D Capital on the Cost Structure and Performance of U.S. Manufacturing Industries

The Effects of Public Infrastructure and R & D Capital on the Cost Structure and Performance of U.S. Manufacturing Industries