Raurich, Xavier; Sala, Hector; Sorolla, Valeri - Departament d'Economia Aplicada, Universitat Autònoma … - 2002
This paper analyses the e¤ects on employment of increasing the stock of public capital. To this end, we derive a wage equation so that wages are endogenized. This allows us to show that, by means of a higher elasticity of labour demand with respect to wages, a rise in public capital increases...