We estimate the long-term effect of public R&D on growth in manufacturing by analyzing new data from the Cold War era Space Race. We develop a novel empirical strategy that leverages US-Soviet rivalry in space technology to isolate windfall R&D spending. Our results demonstrate that public R&D...

Literature describes a positive effect of public investment on private capital accumulation. This paper seeks to provide new empirical evidence on this latter relationship for the case of Spanish regions over period 1965-1997. We use a crowding-out theoretical framework and panel data...

Este trabajo estudia los factores que explican los determinantes de la inversión pública regional a escala provincial. En particular, se analizan los criterios que han podido guiar las decisiones de inversión pública (en carreteras e hidráulicas) realizadas por la Administración...

The relationship between public investment and economic performance has received a substantial attention by economists and policy-makers over the recent few years. In such a way, several approaches have been followed, from different theoretical and empirical points of view. The aim of this paper...

Public investment constitutes one of the main axes of the regional policies. The existence of a direct link between infrastructure and regional income per capita is generally accepted. Also literature describes a positive effect of public investor effort on private capital accumulation. This...

This paper extends the neoclassical growth model with productive public capital by including an infrastructure efficiency index, which is assumed to depend on a public choice variable, in particular, the share of public spending allocated to productive public consumption. A golden rule for the...

Regional infrastructures policies, through an increased public investment, are widely used to promote the development of poorer regions in the European countries. In this paper we try to find some evidence on the optimality in the provision of government capital for the case of the Spanish...

Recent cross-country studies suggest that finance and economic growth are significantly related. The characteristics and geographical scope of this relationship has become central to explain differences in economic development. Two concepts are highly relevant in this context. Firstly, financial...