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Most macroeconomic models assume that aggregate output is generated by a specification for the production function with total physical capital as a key input. Implicitly this assumes that private and public capital stocks are perfect substitutes. In this paper we test this assumption by...
Persistent link: https://www.econbiz.de/10012154588
output. We find that public capital accounts for about half of the post-1973 productivity slowdown, but only plays a minor … role in the partial recovery of labor productivity growth since the mid 1980s. The largest contribution to that (partial …
Persistent link: https://www.econbiz.de/10014401381
This paper estimates the impact of public capital on economic growth for forty-eight OECD and non-OECD countries during 1960 - 2001. Using the production function and its extensions, it finds a positive - but concave - elasticity of output with respect to public capital, which is robust to...
Persistent link: https://www.econbiz.de/10014412197
This paper investigates the deindustrialization and welfare effects of infrastructure aid in developing countries. In … the short run, cost-saving infrastructure aid in the export sector increases the domestic wage rate, whereas the same aid … infrastructure aid. Infrastructure aid in the nontraded sector has no effect on domestic factor prices. Laborsaving infrastructure …
Persistent link: https://www.econbiz.de/10014400615
One objective of government investment is to develop public infrastructure which may reduce private sector costs. In a … recent fiscal adjustment in Mexico is that it has been carried out, in part, by depleting public infrastructure stocks ….We estimate the effects of public infrastructure on private sector costs in Mexico and calculate the implied optimal …
Persistent link: https://www.econbiz.de/10014399662
productivity gains. Guided by theory, we provide evidence consistent with these effects operating through reallocations across … productivity, while import liberalization has ambiguous effects. Resource misallocation can either amplify, dampen or reverse the … firms in the presence of distortions: (i) Both export and import expansion increase average firm productivity, but the …
Persistent link: https://www.econbiz.de/10012301837
Why do governments in developing economies invest in roads and not enough in schools? In the presence of distortionary taxation and debt aversion, the different pace at which roads and schools contribute to economic growth turns out to be central to this decision. Specifically, while costs are...
Persistent link: https://www.econbiz.de/10011704410
We provide the first direct estimates of distribution expenses incurred by manufacturing plants and assess their importance for aggregate output. Using a novel measure from the Indian Annual Survey of Industries, we document three key facts: (1) distribution expenses are large - they amount to...
Persistent link: https://www.econbiz.de/10013170582
What drove the UK productivity slowdown post-GFC, and how is the post-Covid recovery expected to differ? This paper …
Persistent link: https://www.econbiz.de/10012795165
this paper, we investigate whether higher productivity causally leads to lower tax evasion. We first present stylized facts … emerging and developing economies. Our results suggests that productivity improvements by firms can lead to lower tax evasion …
Persistent link: https://www.econbiz.de/10012154898