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We propose a method to estimate both whether there is an overall infrastructure shortage and the optimal share of … infrastructure in gross fixed capital formation (GFCF). This is based on a two-gap model and linear programming, and is illustrated … infrastructures in GFCF. Then, there would have been an infrastructure shortage up until 1964, and an infrastructure surplus there …
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The main goal of the paper is to show the application of the projection method as a tool for the analysis of transitional dynamics of endogenous growth models, the analysis which is very often omitted in common literature on the topic. The application of the method is demonstrated on an...
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