how the actual size of the public capital stock should be measured. The authors state that the focus should be on the … development of gross capital stock. Sebastian Dullien and Katja Rietzler argue that, while the net public capital stock probably … understates the productively available capital stock, the gross figures overestimate it. No matter how one looks at it, Germany …

. However, this fiscal remedy assumes that the marginal net productivity of capital is equal to the interest rate. Evidence … shows that this requirement does not apply. The marginal productivity of private and public capital has not been following …