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...

Abstract The reform of fiscal federalism in Germany enacted in 2006 has focussed on separating the joint legislation process between the federal government and the States (Laender). The German commission on the reform of federalism is now disputing about further reforms in order to establish a...