total factor productivity intangible assets and spatial dependence in the european regions dettori b marrocu e and paci r total factor productivity intangible assets and spatial dependence in the european regions regional studies the aim of this paper is to analyse the determinants of the efficiency levels across the european regions firstly a regression based measure of regional total factor productivity is derived by estimating a spatial cobb douglas production function secondly the role played by intangible factors human capital social capital and technological capital on total factor productivity levels is investigated by applying the spatial two stage least squares 2sls method and the spatial heteroskedasticy and correlation consistent shac estimator to account for both heteroskedasticity and spatial autocorrelation it turns out that a large part of total factor productivity differences across the european regions is explained by disparities in the endowments of these intangible assets dettori b marrocu e and paci r

cross country evidence on the link between the level of infrastructure and capital inflows the relationship between public infrastructure and international capital flows is empirically investigated out of a sample of 30 countries a cross sectional econometric model is constructed to estimate the effects different components of infrastructure variables are tested in relation to their impact on different kinds of external capital liabilities the results suggest a positive relationship between the level of infrastructure and capital inflows however statistical significance cannot be established for all variables in question

accommodating public expenditure policies the case of fast growing asian economies abstract it is widely believed that the exceptional economic performances of the east asian economies are attributable as much to the visible hand of the state as to the invisible hand of the market this paper analyzes the experiences of japan south korea singapore and taiwan in implementing a key instrument of state intervention namely public expenditure policy the analysis shows that these economies could achieve high standards of physical and social infrastructure even with relatively low spending the key features of complementary spending policy include emphasis on macroeconomic stability cost effective spending involvement of private sector in providing quasi public goods minimum distortions in the labor markets and human resource development to achieve a broad based development

entrepreneurship social mobility and income redistribution in south india development economists have been preoccupied with the problem of increasing the size of the gnp pie to the relative neglect of its distribution despite the recent disenchantment with the viewpoint that all classes share in the benefits of industrial growth empirical data on the distribution of income business opportunity and economic power are in short supply many of the studies on entrepreneurship and economic development when they are not apologetics for ruthless capitalist exploitation as paul baran suggests extol the achievements of the capitalist entrepreneur without examining class origins and monopoly advantage joseph schumpeter sees entrepreneurs irrespective of class origin as heroic figures with the dream and will to found a private kingdom to conquer adversity to achieve success for its own sake and to experience the joy of creation for gustav papanek 1967 the private entrepreneur who is frugal diligent far sighted remarkably able and willing to take political risks is in large part responsible for the success of pakistan in achieving rapid industrialization

common factors and common breaks in panels an empirical investigation abstract unobserved common factors and common breaks are two important features in empirical studies using large panels recently baltagi feng and kao 2016 2019 extended pesaran s 2006 common correlated effects cce approach by allowing for common breaks and endogenous regressors in large heterogeneous panels in this note we empirically investigate these estimators and compare them with cce and bai s 2009 interactive fixed effects ife estimators in the context of china s provincial infrastructure investment

how misleading is linearization evaluating the dynamics of the neoclassical growth model this paper investigates the reliability of employing linearization to evaluate the dynamic adjustments to changes in productive government spending in a ramsey growth model if government expenditure is introduced as a flow and the dynamic adjustment is fast linearization may yield a reasonably good approximation to the true dynamics even for fairly large policy shocks if government expenditure assumes the form of a stock leading to more sluggish adjustment linearization may yield misleading predictions these errors occur at the beginning of the transition and weigh heavily in welfare calculations the implications for temporary shocks and the speed of convergence are also considered

ict and transport infrastructure development an empirical analysis of complementarity abstractthis paper provides an empirical framework to assess the nonlinear complementary linkage effects that arise from the interaction between motorway capital and information and communications

evaluating the social optimality of durable public good provision using the housing price response to public investment recent empirical work in public finance uses the housing price response to public investment to assess the efficiency of local durable public good provision this paper explores the theoretical justification for this technique it points out that the logic justifying the technique for evaluating non durable public good provision does not translate to the durable case a model in which investment is determined by the interaction between a budget maximizing bureaucrat and a community s residents is used to demonstrate that the technique can falsely predict under provision falsely predict over provision or perform without error

on the effectiveness of private and public capital this study assesses the effectiveness of private and public capital investments in the performance of manufactures within the framework of the duality theory the response of costs of production and input utilization to changes in the stocks of private and public capital is measured by the appropriate elasticities obtained from a cost function instead of considering private capital either as a variable or fixed input on a priori grounds its nature is checked that is the study discriminates between a long and a short run situation the empirical exercise is made for the manufacturing industries in the spanish regions

is infrastructure capital productive a dynamic heterogeneous approach this paper offers an empirical evaluation of the output contribution of infrastructure drawing from a large data set on infrastructure stocks covering 88 countries and spanning the years 1960 2000 and using a panel time series approach the paper estimates a long run aggregate production function relating gdp to human capital physical capital and a synthetic measure of infrastructure given by the first principal component of infrastructure endowments in transport power and telecommunications tests of the cointegration rank allowing it to vary across countries reveal a common rank with a single cointegrating vector which is taken to represent the long run production function estimation of its parameters is performed using the pooled mean group estimator which allows for unrestricted short run parameter heterogeneity across countries while imposing the testable restriction of long run parameter homogeneity the long run elasticity of output with respect to the synthetic infrastructure index ranges between 0 07 and 0 10 the estimates are highly significant both statistically and economically and robust to alternative dynamic specifications and infrastructure measures there is little evidence of long run parameter heterogeneity across countries whether heterogeneity is unconditional or conditional on their level of development population size or infrastructure endowments

two sector growth models with productive public goods equilibrium in determinacy author affiliation been lon chen institute of economics academia sinica 128 academia road section 2 taipei 11529 taiwan e mail bchen econ sinica edu tw corresponding author shun fa lee department of industrial economics tamkang university 151 ying chuan road tamsui taipei county 25137 taiwan e mail alphalee mail tku edu tw acknowledgment we are grateful to two anonymous referees and an editor for constructive comments and to participants in several workshops for valuable comments and suggestions in earlier versions of the paper 1 introductionmodels of economic growth with multiple equilibrium paths offer an explanation as to why we often observe diverse growth performances among countries with similar economic environments a central question is under what conditions is it possible to establish local indeterminacy in this paper we study a lucas 1988 human capital based growth model and investigate whether there are multiple equilibrium paths and thus local equilibrium indeterminacy in the neighborhood of a balanced growth path equilibrium indeterminacy in existing two sector human capital based growth models emerges based upon two mechanisms one of the mechanisms is differential factor tax rates initiated in the work of bond wang and yip 1996 and followed by that of raurich 2001 the other mechanism is sector specific externalities pioneered in the work of benhabib and farmer 1996 in an exogenous growth model and followed by the work of benhabib meng and nishimura 2000 and mino 2001 in endogenous growth models ben gad 2003 combined the two mechanisms these two mechanisms establish local indeterminacy when the mechanisms cause the factor intensities at the social perspective and those at the private perspective to reverse the purpose of this paper is twofold first we argue that once productive public goods are considered the two existing mechanisms are not robust in creating local indeterminacy then we take into account congestion in public services so a two sector model with the two existing mechanisms can generate local indeterminacy our purpose is motivated by the following in the existing models with sector specific externalities or distorted factor taxes there is either no government spending or if the government spending is taken into account only consumptive public spending and government transfers are considered recently a number of authors have documented the positive impact of public expenditure upon the productivity of private capital 1 when there is productive public spending the production technology is externally enhanced by the public goods productive public goods as an engine of economic growth have received much attention in endogenous growth models in particular a number of studies in this line of modeling strategy have obtained local indeterminacy 2 thus it is important to determine whether or not differential factor tax rates and sector specific externalities create local indeterminacy in models with productive public goods however as we will find the two existing mechanisms no longer create local indeterminacy in a two sector growth model with productive public goods unless the difference in the factor tax rates and the gap in the sector specific externalities are implausibly large intuitively productive public goods introduce the effects of intersectoral externalities they offset the effects of the two existing mechanisms that would have otherwise reversed the factor intensity at the social viewpoint from the factor intensity at the private viewpoint as a consequence the two existing mechanisms are not robust in the establishment of local indeterminacy in models with productive public goods this paper then introduces the congestion effect in the use of public goods an effect offsetting the effect from public spending to salvage the two existing mechanisms

intertemporal output and employment effects of public infrastructure capital evidence from 12 oecd economies this paper utilises an intertemporal optimisation framework to study the effects of public infrastructure capital on output supply and input demands in 12 oecd countries we find that in all 12 countries i public capital has positive long run effects on both output supply and input demands ii its mean short run rates of return are fairly low while the corresponding long run rates are much higher but declining over time these findings underscore important under investment gaps in infrastructure during the 1970s and 1980s these gaps however narrowed down significantly in a few cases completely by the early 1990s

agricultural productivity and economic growth role of tax revenues and infrastructures 1 introductiondevelopment economists such as rostow 1960 and ranis and fei 1961 have stressed a positive linkage between agricultural productivity and industrialization the positive link however has been argued to be nonexistent by matsuyama 1992 in a two sector endogenous growth model of small open economies with a low elasticity of agricultural goods and the existence of learning by doing only in the domestic manufacturing sector 1 as a result of comparative advantage higher agricultural productivity solicits labor inputs from the manufacturing sector in his model leading to lower learning by doing and economic growth matsuyama s results however may not be consistent with what has actually happened in japan and other east asian economies in japan a land reform has been implemented and allocation of resources to agricultural research has been increased since the meiji restoration as a result of agricultural technical progress 2 agricultural productivity in japan is much higher than before the meiji restoration in particular evidence has shown that the agricultural technical change after the meiji restoration tends to increase nonagricultural output by pushing resources out of the agricultural sector into the nonagricultural sector for example see yamaguchi and binswanger 1975 table 7 for the quantitative effects of the agricultural technical change in japan on nonagricultural output column 3 and on input reallocation columns 5 and 7 in 1880 1965 similarly the agricultural technical change was higher in korea s and taiwan s early stages of economic development as they have founded agricultural research institutes and farmers associations during the japanese colonial period3 and implemented land reforms after world war ii for evidence see mason et al 1980 chapter 7 for the case of korea and thorbecke 1979 for the case of taiwan a world bank 1982 p 45 study reports that for the 23 developing countries whose agricultural growth rate in the 1970s exceeded 3 a year 17 countries had a gdp growth rate above 5 a year in the same period finally using cross country data for 14 asian developing countries in 1960 1986 mellor 1995 finds a positive and significant relationship between growth rate of per capita agricultural and nonagricultural gdps in which both agricultural and nonagricultural sectors grow more rapidly than 31 sub saharan and 20 latin american countries these above observations lead to interesting questions as to what mechanism lies in the positive impact of accelerated agricultural growth on nonagricultural growth what policies might increase the efficiency with which a productive agricultural sector moves a nonagricultural sector forward the purpose of this study is to revisit the linkages between agricultural productivity and economic growth with a government policy our model is based on matsuyama s 1992 framework with a small twist so that we can clearly identify the mechanism leading to a positive relationship the departure in this article lies in introducing a government which collects taxes and then conducts expenditures on infrastructures an important role played by higher agricultural productivity in an early stage of economic development is the one by which it renders the government larger tax revenues so that larger expenditure on infrastructures is facilitated 4 in a study investigating taiwan s rice for fertilizer bartering system in the 1950s and 1960s koo 1996 table 2 finds that the resulting hidden taxes on rice alone account for 10 20 of total tax revenue in the period extending from 1950 to 1969 along with other taxes the agricultural sector is thus an important source of government revenue in a developing economy 5 following barro 1991 public expenditure on infrastructures is assumed to be productive in that the learning by doing effect of the manufacturing sector becomes enhanced with public expenditure on infrastructures

is public capital really productive a methodological reappraisal abstract we present an evaluation of the main empirical approaches used in the literature to estimate the contribution of public capital stock to growth and private factors productivity based on a simple stochastic general equilibrium model built as to reproduce the main long run relations observed in us post war historical data we show that the production function approach may not be reliable to estimate this contribution our analysis reveals that this approach largely overestimates the public capital elasticity given the presence of a common stochastic trend shared by all non stationary inputs

infrastructure provision and macroeconomic performance this paper studies the differences between private and government provision of infrastructure capital utilization decisions and their differential role in determining market prices for capital goods under the two regimes of infrastructure provision serve as a critical transmission mechanism for fiscal policy a subsidy to private providers of infrastructure is preferable to direct government provision irrespective of how the subsidy or expenditure is financed the case for private provision is much stronger in economies characterized by high levels of congestion the choice between private and government provision also has a crucial effect on the design of optimal fiscal policy 2011 elsevier b v all rights reserved

public investment congestion and private capital accumulation this paper analyses the impact of public investment on the dynamics of private capital formation in an intertemporal optimising market clearing framework the key feature characterising the analysis is that the public good is treated as a durable capital good subject to congestion we show how in the presence of congestion the effect of government investment on private capital formation involves a tradeoff between the degree of substitution between private and public capital in production and the degree of congestion both lump sum and distortionary tax financing are considered with this tradeoff being tightened in the latter case

capital utilization economic growth and convergence abstract optimal decisions by economic agents regarding the utilization of capital lead to empirically plausible speeds of convergence in one sector models of economic growth the relationship between depreciation and capital utilization plays a crucial role in slowing down convergence to the steady state cross country differences in the extent to which the capital utilization decision is internalized along the transition path may lead to differences in convergence rates even for countries with similar initial and terminal conditions finally by assuming a constant depreciation rate and full capital utilization standard growth models may be overstating the magnitude of the steady state equilibrium

public infrastructure and the productive performance of canadian manufacturing industries this article examines the effects of public infrastructure on the productive performance of 12 two digit canadian manufacturing industries a flexible cost function incorporating public capital infrastructure is estimated for each industry separately using annual time series data for 1961 1995 the effects of public infrastructure on productivity are measured in terms of both cost saving dual and output augmenting primal measures we also investigate how public capital influences the input demand and cost structure in each industry and calculate the rate of return to public capital the empirical results provide strong evidence of the important role public infrastructure plays in the productivity of manufacturing industries the public capital serves as a substitute for both private capital and labor in most industries the rates of return to public capital are significant and vary over the years

nonlinear budget constraints and consumer demand an application to public programs for residential housing abstract this study presents a methodology for exploiting the nonlinear hedonic nature of housing prices to estimate the compensated demands of households for particular housing attributes the methodology is employed to provide hicksian benefit measures of a particular housing subsidy program typical of those undertaken recently in developing countries

the politics of infrastructure investment the role of product market competition abstract in spatial competition public infrastructure plays a crucial role in determining product market outcomes in our model consideration of infrastructure s impact on the product market drives the preferences of consumers in their dual role as voter taxpayers the spatial heterogeneity of consumers produces conflicting political interests and in many cases inefficient outcomes however across both exogenous and endogenous market environments product market competition consistently leads to higher levels of publicly funded infrastructure than monopoly collusion furthermore competition s boost to the popular support for infrastructure investment is often excessive while monopoly leads to underinvestment

an analysis of the demand for housing attributes this paper uses a two step approach to estimate a system of structural demand equations for housing attributes estimation of a hedonic price regression in the first step yields implicit prices for housing attributes for the toronto metropolitan area in 1978 which are then used to estimate the expenditure share equations derived from the indirect translog utility function empirical results indicate that the composite housing attributes used in the second stage model are own price elastic while an examination of cross price relationships reveals that these attributes are reasonably substitutable

public capital and private productivity this paper uses three different approaches to investigate whether the declining provision of public capital is a major cause of declining labor productivity the juxtaposition of approaches removes

structures investment and economic growth a long term international comparison interest has grown again in recent years about the long term and cyclical nature of building investment and its effect on the macroeconomy this paper investigates the nature of building trends and cycles from the 19th century to the present day for eight major oecd economies focusing predominantly on non housing structures the kalman filter is used to decompose the series into trends and cycles it was found that building cycles exist in all countries though with considerable variation comparisons of volatility between countries and between the different types of fixed investment are made the long run share of fixed investment in structures as a proportion of national income is investigated consideration is given to whether international building investment trends are coincident and an analysis made of the long term correlation between structures investment cycles

productivity and financial sector policies evidence from south east asia this paper uses primary data collected from the central bank reports to examine the influence of financial sector policies on the average productivity of capital in five south east asian economies the data include measures of repressionist policies encompassing interest rate controls directed credit programmes and reserve and liquidity requirements we use time series techniques to examine whether these policies have a statistically significant influence on the average productivity of capital conditioning on variables suggested by economic theory these policies are found to have a significant negative effect on productivity in most cases with the important exception of south korea for which we find significant positive effects

institutions infrastructure and economic growth abstract this paper develops a structural model of infrastructure and output growth that takes account of institutional and economic factors that mediate in the infrastructure gdp interactions cross country estimates of the model indicate that the contribution of infrastructure services to gdp is substantial and in general exceeds the cost of provision of those services the results also shed light on the factors that shape a country s response to its infrastructure needs and offer policy implications for facilitating the removal of infrastructure inadequacies

choosing size of government under ambiguity infrastructure spending and income taxation i examine choice of size of government by a planner who has partial knowledge of population preferences and the productivity of public spending focusing on income tax financed spending for infrastructure i examine scenarios where the planner observes the outcome of a status quo policy and uses various decision criteria to choose policy the analysis shows that the planner can reasonably choose a wide range of spending levels thus a society can rationalise having a small or large government i conclude that to achieve credible conclusions about the desirable size of government we need to improve current knowledge of preferences and the productivity of spending vastly

specification of hedonic regressions non nested tests on measures of neighborhood quality abstract the j test a non nested test is used to determine which set of neighborhood variables best explains the variation in housing prices the results indicate that characteristics of neighbors race and socio economic descriptors are more important than the quality of public services

valuing rail access using transport innovations this paper uses a powerful empirical method to evaluate the benefits of rail access to consumers we study the effects on house prices of a transport innovation that altered the distance to the nearest station for some households but left others unaffected the transport innovation we study is the construction of new stations in london in the late 1990s using this innovation we implement a quasi experimental approach that allows us to avoid the biases inherent in cross sectional valuation work our evidence on distance station effects on local prices identified through distance changes induced by the transport innovation suggests that households value rail access and that these valuations are large compared to the valuations of other local amenities

is all public capital created equal this paper uses a var approach to investigate the effects of public investment on private sector performance in the united states this approach is consistent with the argument that the analysis of

evaluating the effects of the m6 toll road on industrial land development and employment pugh g and fairburn j evaluating the effects of the m6 toll road on industrial land development and employment regional studies the paper reports the first evaluation of the wider economic effects of the m6 toll the uk s first toll motorway methodologically it contributes to the literature evaluating the economic effects of new transport infrastructure by exploiting a new source of data applying fresh econometric techniques and triangulating quantitative results with interview data it is concluded that the m6 toll has caused a positive development effect at the sub regional level in addition reasons are advanced why the development potential of new road infrastructure may be amplified rather than reduced by tolls pugh g et fairburn j evaluer les effets de la route a peage m6 sur le developpement des zones friches et l emploi regional studies cet article cherche a presenter les premiers resultats quant aux retombees economiques de plus grande envergure de la route a peage m6 la premiere r

the value of school facility investments evidence from a dynamic regression discontinuity design author s cellini stephanie riegg ferreira fernando rothstein jesse abstract despite extensive public infrastructure spending surprisingly little is known about its economic return in this paper we estimate the value of school facility investments using housing markets standard models of local public goods imply that school districts should spend up to the point where marginal increases would have zero effect on local housing prices our research design isolates exogenous variation in investments by comparing school districts where referenda on bond issues targeted to fund capital expenditures passed and failed by narrow margins we extend this traditional regression discontinuity approach to identify the dynamic treatment effects of bond authorization on local housing prices student achievement and district composition our results indicate that california school districts underinvest in school facilities passing a referendum causes immediate sizable increases in home prices implying a willingness to pay on the part of marginal homebuyers of 1 50 or more for each 1 of capital spending these effects do not appear to be driven by changes in the income or racial composition of homeowners and the impact on test scores appears to explain only a small portion of the total housing price effect c 2010 by the president and fellows of harvard college and the massachusetts institute of technology

optimal co investment in supply chain infrastructure abstract this paper considers co investment in a supply chain infrastructure using an inter temporal model we assume that firms capital is essentially the supply chain s infrastructure as a result firms policies consist in selecting an optimal level of employment as well as the level of co investment in the supply chain infrastructure several applications and examples are presented and open loop as well as feedback solutions are found for non cooperating firms long and short run investment cooperation and non simultaneous moves stackelberg firms in particular we show that a solution based on nash and stackelberg differential games provides the same level of capital investment thus selecting the leader and the follower in a co investment program does not matter we show that in general co investments by firms vary both over time and across firms and thereby render difficult the implementation of co investment programs for future capital development to overcome this problem we derive conditions for firms investment share to remain unchanged over time and thus be easily planned

corrigendum to congestible public goods and local indeterminacy a two sector endogenous growth model journal of economic dynamics control 31 7 2007 2486 2518

reprint to infrastructure provision and macroeconomic performance abstract this paper studies the differences between private and government provision of infrastructure capital utilization decisions and their differential role in determining market prices for capital goods under the two regimes of infrastructure provision serve as a critical transmission mechanism for fiscal policy a subsidy to private providers of infrastructure is preferable to direct government provision irrespective of how the subsidy or expenditure is financed the case for private provision is much stronger in economies characterized by high levels of congestion the choice between private and government provision also has a crucial effect on the design of optimal fiscal policy

what to show on the wine labels a hedonic analysis of price drivers of sicilian wines unlike previous literature we construct a hedonic model of wine price that incorporates all the main categories of variables simultaneously to enable a better evaluation of their importance on wine price formation a comprehensive model has the advantage of providing more reliable estimates of the attributes implicit prices thereby facilitating firms pricing and improving effectiveness of wine production and marketing decisions we utilize two different datasets of sicilian wines collecting data from influential wine guides our results suggest that wine price strongly depends on objective features such as vintage alcoholic content geographical origin grape variety producer size and cellaring potential in addition use of containers like tonneaux and barrique positively affects prices whereas use of concrete containers has a negative influence no univocal indications emerge with regard to the effect of the type of company type of viticulture and firm age as for sensorial characteristics our a

devolved government and public sector pay reform considerations of equity and efficiency elliott r f bell d scott a ma a and roberts e 2005 devolved government and public sector pay reform considerations of equity and efficiency regional studies 39 519 539 public sector pay is of critical concern to the governments in westminster and edinburgh it accounts for the major part of these government s current expenditures and is a crucial determinant of the quality and range of the services they provide the paper details the current arrangements for setting public sector pay it is shown that these mechanisms are for the most part uk wide and that they result in national rates of pay that reveal little sensitivity to specific labour market conditions in scotland in consequence in scotland public sector workers toward the lower end of the distribution of pay are now significantly better paid than their private sector counterparts while those at the upper end are now paid about the same the paper uses data from the labour force survey for 1996 2002 to establish these results

international aspects of public infrastructure investment m odelling infrastructure as an international public good in a two country m odel of trade where each country s social planner behaves strategically we show that the equilibrium levels of infrastructure are sub optimal from a global perspective utilising an appropriate econom etric fram ework and data from 16 european countries over the period 1987 95 we find evidence that accords well with the m ain predictions of our theory thus we are able to offer a plausible theoretical explanation why public capital m ay be undersupplied as suggested by previous em pirical literature

does infrastructure investment stimulate building supply the case of the english regions ball m and nanda a does infrastructure investment stimulate building supply the case of the english regions regional studies policies to improve infrastructure to stimulate regional growth remain common this paper investigates whether increases in infrastructure investment in the english regions lead to subsequent rises in new commercial and residential property using time series modelling both physical roads and harbours and social infrastructure education and health impacts are investigated hardly any infrastructure effects with respect to commercial property investment were found which raises doubts about whether extra infrastructure creates employment though some impact was related to residential building overall these results raise doubts about the supposed direct effects of infrastructure policies on regional jobs and growth

can transport infrastructure change regions economic fortunes some evidence from europe and china abstractcan transport infrastructure change regions economic fortunes some evidence from europe and china regional studies claims and counterclaims about the likely impact of new transport infrastructure on a region s economic performance have existed for centuries going back to the early days of canals and railways high speed rail hsr as a new type of infrastructure has just over 50 years of existence the persistent debate is questioning the power of hsr in reducing economic disparities between cities and effecting economic transformation the paper goes beyond macro modelling looking to more disaggregated approaches of the structural changes two regions one in europe and one in china are compared to gain insights for future research and practice

fiscal federalism at work central responses to internal migration in india summary internal migration is thought to have substantial benefits for migrants and for the development of migrant sending and migrant receiving areas in order to facilitate such migration central governments may need to use fiscal transfers to ensure services to migrants address infrastructure shortfalls and ameliorate labor market displacement of natives in fact an extensive mostly normative fiscal federalism literature has argued that central governments ought to use transfers to reduce interjurisdictional externalities such as those due to population displacements we extend this literature empirically by examining the degree to which exogenous longterm migration prompts the redirection of central fiscal resources in india following the literature on distributive politics we argue that transfers in decentralized systems addressing the costs of population movements are influenced by partisan politics using monsoon shocks to migration we show that increases in migration are met with greater central transfers but that these flows are at least 50 greater if the state level executive is in the prime minister s political party consistent with the theory the influence of politics is greatest on parts of the budget subject to greater executive control this politicization may explain why indian states maintain barriers to internal migration despite the development costs of doing so

infrastructures and productivity in the spanish regions mas m maudos j perez f and uriel e 1996 infrastructures and productivity in the spanish regions reg studies 30 641 649 the aim of this paper is to analyse the role of public capital the types of infrastructures in which it is invested and their territorial distribution in the gains in productivity of the private sector in the spanish regions in the period 1964 91 using panel data techniques to control for unobserved state specific characteristics the results obtained show how the infrastructures most directly linked to the productive process present a significant and positive effect on productivity they also show the importance of the network effect of the infrastructures of a productive nature as well as a decrease in the elasticity associated with such infrastructures as development progresses mas m maudos j perez f et uriel e 1996 les infrastructures et la productivite aux regions espagnoles reg studies 30 641 649 cet article cherche a analyser le role du capital public les

infrastructure investment a review essay economists try not to be faddists but they often cannot help themselves while work on a topic should mirror the prospective importance of the topic that situation seems to occur with disappointing frequency instead the usual pattern is that some reasonably important topic will be totally ignored for the longest time then recognized and then the subject of a flurry of work all out of proportion to its likely long run importance nowhere has this speculative bubble of economic research been more clearly illustrated than with infrastructure investment macroeconomists havelong felt that the stock of public capital is an important factor input in the production of total output macroeconomists have known that u s productivity growth slowed dramatically in about 1973 and macroeconomists should have known that united states investment in public capital has been down since the late 1960s yet analysis of the u s productivity slowdown completely ignored infrastructure investment for the first fifteen years of this slowdown concentrating instead on energy prices social regulation the composition of the work force research and development different rates of obsolescence of the private capital stock and any number of other matters the public capital stock was hardly ever even mentioned as a potential factor in the productivity slowdown aschauer changed all that he wrote a series of papers 1989a 1989b 1989c that put these two movements together econometrically infrastructure investment turned down and aggregate productivity turned down slightly later both in the united states and in some other developed countries his work hit the magic button those who had worried about the productivity puzzle for fifteen years welcomed a new suspect those who were worried about low rates of u s national saving welcomed a new way to make their argument even more forcefully than with official figures on saving and investment which do not count infrastructure investment as investment political liberals and liberal politicians saw a way to rescue government spending and projects from the assaults of reaganism and even a way to avoid oth

scale congestion and growth this paper explores the relationship between aggregate and relative congestion returns to scale and economic growth aggregate congestion reduces the effective productivity of capital relative congestion reduces the effective productivity of labour both forms of congestion adversely affect the equilibrium growth rate although their relative effects depend upon aggre gate returns to scale the two forms of congestion have contrasting effects on the transitional dynamics relative congestion retards the rate of adjustment aggregate congestion accelerates it the externalities generated by congestion and non optimal expenditure can be fully cor rected both during the transition and in steady state by a time invariant income tax the role of public expenditure as an instrument of economic growth has been a major policy issue as governments throughout the world design stimulus packages as in japan and face difficult choices to meet the emu criteria in europe empirical research investigating the impact of public investment on the productivity of private capital and output was stimulated by aschauer 1989a b who found the effects to be strongly positive the nature of public investment is however diverse in general public goods vary extensively in terms of the nature of their services spanning the range between the polar cases of pure private and pure public goods but the treatment of public expenditures in formal growth models is limited barro 1990 and futagami et al 1993 treat government expenditure as a pure pub lic good and in so doing they fail to take account of the congestion typically associated with public goods however as barro and sala i martin 1992 have argued almost all public services are characterized by some degree of congestion so that the pure public good should be viewed as only a bench mark these considerations suggest that congestion is an important consider ation in assessing the effect of public expenditures on economic growth attempts to analyse the effects of congestion on economic growth have been limited in various dimensions drawing on the public goods literature edwards 1990 proposes a number of specifications of congestion two notions particularly relevant in a growth context are relative congestion and aggregate absolute congestion the former specifies the level of services derived by an individual from the provision of a public good in terms of the usage of his individual capital stock relative to the aggregate capital stock aggregate congestion sometimes called crowding indicates how aggregate usage of the service alone influences the services received by an individual 2 existing applications of congestion to growth theory introduce it into ak models see barro and sala i martin 1992 1995 glomm and ravikumar 1994 1997 and turnovsky 1996 1997 however the ak model features two limitations that restrict its flexibility to examine the relationship between congestion and growth first as solow 1994 pointed out sustained ongoing

urban growth and transportation we estimate the effects of interstate highways on the growth of u s cities between 1983 and 2003 we find that a 10 increase in a city s initial stock of highways causes about a 1 5 increase in its employment over this 20 year period to estimate a structural model of urban growth and transportation we rely on an instrumental variables estimation that uses a 1947 plan of the interstate highway system an 1898 map of railroads and maps of the early explorations of the u s as instruments for 1983 highways we investigate the role of interstate highways in the growth of u s cities our investigation is in three parts in the first we develop a simple structural model describing the joint evolution of highways and employment in cities in the second we develop an instrumental variables strategy that allows us to identify key parameters of our structural model we are also able to provide out of sample evidence for the validity of our estimates and for the central assumptions of our model in the third we use our estimates to assess counterfactual transportation policies we find that a 10 increase in a city s stock of interstate highways causes about a 1 5 increase in its employment over 20 years and that an additional kilometre of highway allocated to a city at random is associated with a larger increase in employment or population than is a road assigned to a city by the prevailing political process our results also suggest that too many new highways were built between 1983 and 2003 these findings are important for three reasons first transportation generally and infrastruc ture in particular are large segments of the economy the median u s household devotes about 18 of its income to road transportation while all levels of government together spend another 200 billion dollars annually overall the value of capital stock associated with road transporta tion in the u s tops 5 trillion dollars united states bureau of transportation statistics 2007 2010 given the magnitude of transportation expenditures it is important that the impact of these expenditures on economic growth be carefully evaluated and not assessed on the basis of the claims of advocacy groups our analysis provides a basis for assessing whether these resources are well allocated our results also provide useful guidance to policy makers charged with planning cities since changes in a city s transportation infrastructure cause changes to the city s employment new transportation infrastructure causes complementary changes in the demand for public utilities and schools our results provide a basis for estimating the magnitude of such changes finally this research is important to furthering our understanding of how cities operate and grow transportation costs are among the most fundamental quantities in theoretical models

endogenous structural breaks public investment in agriculture and agricultural land productivity in taiwan using time series data for taiwan s agricultural sector and with the government s public investment in the agricultural sector serving as a proxy variable for nonfarm current inputs aside from the original labour and capital input variables usually taken into consideration this article examines the relationship between public investment in agriculture public investment land and agricultural land productivity output land in taiwan our main findings are as follows first the cointegration test reveals that public investment in agriculture and the productivity of agricultural land exhibit a significant positive relationship in the long run where the elasticity of land productivity in relation to public investment in agriculture is 0 55 second when controlling for endogenous structural breaks the long run equilibrium relationship for the productivity of the agricultural land model is still supported third the results of the weak exogeneity test indicate that a causal relationship exists in the lo

growth convergence and public investment a bayesian model averaging approach the aim of this study is twofold first the determinants of economic growth are studied among a wide set of potential variables for the spanish provinces nuts3 among others various types of private public and human capital in the group of growth factors are included also it is analysed whether spanish provinces have converged in economic terms in recent decades the second objective is to obtain cross section and panel data parameter estimates that are robust to model specification for this purpose a bayesian model averaging bma approach is used bayesian methodology constructs parameter estimates as a weighted average of linear regression estimates for every possible combination of included variables the weight of each regression estimate is given by the posterior probability of each model

telecommunications infrastructure and economic development a simultaneous approach in diesem beitrag wird untersucht welchen einflus die telekommunikations infrastruktur auf die wirtschaftliche entwicklung ausubt diese wichtige frage hat im zusammenhang mit der diskussion um informationsautobahnen aktualitat erlangt in der vorliegenden studie wird der einflus der telekommunikations infrastruktur fur 21 oecdlander fur die vergangenen 20 jahre analysiert es wird ein strukturgleichungsmodell geschatzt in dem investitionen in die telekommunikations infrastruktur als endogene variable erfast werden und in einem mikromodell angebot und nachfrage nach telekommunikations investitionen spezifiziert werden das mikromodell wird dann zusammen mit der makro wachstumsgleichung geschatzt als ergebnis stellen die autoren dann eine positive kausalbeziehung zwischen telekommunikations investitionen und wirtschaftlicher entwicklung fest wenn eine kritische masse an telekommunikations infrastruktur existiert

congestible public goods and local indeterminacy a two sector endogenous growth model abstract this paper shows that the congestible public goods can generate local indeterminacy in a two sector constant return human capital enhanced growth model while the productive public good exerts positive sector specific externalities the congestion effect generates negative aggregate externalities the sector specific externalities alone arising from productive public goods cannot establish local indeterminacy without the combination of negative externality in a model with social constant return technology congestible public good generates local indeterminacy if the degree of productive public good externality and the degree of congestion effect are large enough the condition for indeterminacy is independent of the factor intensity rankings the conditions are quantitatively assessed and the required parameter values for the degrees of public good externality and congestion are consistent with the estimated values in existing literature

hedonic prices demands for urban housing amenities and benefit estimates abstract this paper uses a rosen two step hedonic price trait demand approach to estimate demand functions for a vector of urban amenities to ascertain whether this theoretically preferred approach yields benefit estimates which differ from the oft used ridker henning one step hedonic approach we conduct a sensitivity analysis we find that the two step approach does yield different benefit estimates and that the differences are large for some amenities the estimates are sensitive to the functional form of the hedonic equation when the forms are significantly different according to modified box cox results but are not particularly sensitive to specification of the amenity demand equation

the intertemporal elasticity of substitution an analysis based on japanese data this paper investigates whether the intertemporal elasticity of substitution ies for japan possesses similar properties to that found for the united states in the literature as the existing empirical findings are mixed there is no clear consensus this paper uses a model with both production and non separability between nondurables and durables in order to control for possible factors that cause a bias in the ies we present the empirical results demonstrating that the ies is quite similar between the two countries

public capital accumulation and private sector performance abstract this paper analyzes the effects of public capital on private sector variables in a vector auto regressive framework empirical results suggest first that public capital follows a policy rule that relates public capital positively with lagged output and negatively with lagged employment second public capital crowds in private capital while the long term effects on employment are only marginally positive finally a one dollar increase in public capital increases private output in the long term by 65 cents accordingly while public capital is productive its effects on output are much lower than claimed in the previous literature

the productivity effect of government capital in developing and industrialized countries this paper uses an aggregate production function to examine the effect of government capital formation on growth of labour productivity in an annual panel of 12 developing and 12 oecd economies covering the period 1976 1989 the results from a pooled model of all 24 countries indicate that contribution of government capital to labour productivity is positive and statistically significant this result also holds in separate samples of the industrialized and developing economies where we find that while there are productivity differentials between the two types of economies with respect to private capital there are no differences with regards to public capital

infrastructure endowment and corporate income taxes as determinants of foreign direct investment in central and eastern european countries this paper analyses the importance of taxes on corporate income and production related tangible infrastructure as determinants of foreign direct investment fdi in central and eastern european countries ceecs we operationalise taxes using effective average tax rates on the bilateral level and employ indices derived from principal component analysis as a proxy for the infrastructure endowment in the empirical analysis we control for a possible interrelation between taxes and infrastructure as determinants of fdi an issue usually neglected in the literature specifically a favourable infrastructure endowment may compensate for relatively high taxes hence higher taxes may not deter fdi the results from our panel econometric analysis of bilateral outward fdi flows of seven home countries in eight ceecs for the 1995 2004 period in an augmented gravity model setting show that i both taxes and infrastructure play a role in the location decisions made by multinational enterprises ii telecommunication and transport infrastructure are of special significance to fdi and iii the tax rate sensitivity of fdi indeed decreases with the level of infrastructure endowment copyright 2009 the authors journal compilation 2009 blackwell publishing ltd

the transitional dynamics of fiscal policy long run capital accumulation and growth this paper analyzes the effects of fiscal policies in a non scale growing economy with public and private capital the equilibrium dynamics are characterized and we contrast the dynamic effects of government expenditure on investment and expenditure on consumption under four alternative modes of tax financing most of our attention focuses on the numerical simulations of a calibrated economy the results emphasize the lengthy transition periods which implies that policies have sizeable level effects leading to substantial welfare effects even though long run growth rates are unaffected the paper highlights the intertemporal dimensions of fiscal policy and the tradeoffs these involve for economic performance especially growth and welfare

regional evidence on the effect of the national minimum wage on the gender pay gap robinson h 2005 regional evidence on the effect of the national minimum wage on the gender pay gap regional studies 39 855 872 this paper provides evidence on employment rates and the extent of the change in the gender wage gap across regions around the introduction of the national minimum wage nmw the variation in the proportions of low paid workers across britain provides a quasi natural experiment with which to try and measure the effect of the introduction of the nmw all things being equal if women are over represented amongst the low paid and the proportion of low paid workers varies across regions one might expect to see the introduction of the nmw narrowing the overall gender pay gap by varying degrees across the country using difference in differences type estimation on labour force survey data it is concluded that there is variation in the limited narrowing of the overall gender pay gap across regions consistent with regional differences in the incidence and magnitude of low pay

foreign aid and economic growth the role of flexible labor supply this paper examines the link between foreign aid economic growth and welfare in a small open economy external transfers impinge on the recipient s macroeconomic performance by affecting resource allocation decisions and relative prices the endogeneity of the labor leisure choice plays a crucial role in the propagation of foreign aid shocks the efficacy of foreign aid also depends on externalities associated with the public good that it helps finance the impact of tied and untied aid on the recipient government s intertemporal fiscal balance is examined finally the transitional adjustment to a foreign aid shock is shown to be sensitive to the elasticity of substitution in production and the relative importance of the labor leisure choice in utility

spillover effects of public capital formation evidence from the spanish regions maybe because of the inconclusive nature of the results on the impact of public capital on output at the regional level the issue of the po ssible existence of the regional spillovers from public capital formation has received little attention the objective of this paper is to provide evidence on the possible existence of such spillovers we consider the case of spain and its seventeen regions our methodological approach consists in estimating an aggregate var model for spain as well as seventeen region specific var models in which both capital installed in the region and capital installed outside the region are allowed to play a role in en hancing regional output the estimation results can be summarized as follows the aggregate effects of public capital formation in spain are important they cannot however be captured in their entirety by the direct effects in each region from public capital installed in the region itself when for each region both the capital installed in the region and the capital installed outside the region are considered the total disaggregated effect from the seventeen regional models are very much in line with the aggregate results furthermore the aggregate effect seems to be due in almost equal parts to the direct and spillover effects of public capital formation ultimately this paper establishes the relevance of both capital installed in each region and s pillover effects in the understanding of the regional decomposition of the aggregate effects of public capital formation in doing so it opens the door to some tantalizing and potentially highly charged research issues in terms of the determination of the optimal location of public investment projects

public infrastructure and productivity growth in greek agriculture recent research has focused on the effect of public infrastructure on economic performance in this paper a model of greek agriculture s technology and behaviour is constructed based on the dual cost function framework the model provides a decomposition of productivity growth into the components technical change returns to scale and public infrastructure the empirical estimates indicate that public infrastructure investment provides a significant return to agriculture and augments productivity growth over the period 1960 1995 the impact of public infrastructure on productivity growth in livestock and crop production is found to be positive although it has been declining since the late 1970s these results strongly suggest that a decline in public infrastructure investment can partly explain the observed decline in the productivity growth of greek agriculture in the 1980s

the effects of a new subway line on housing prices in metropolitan toronto an analysis by means of using the estimation results of a modal choice model and the hedonic price regressions model is conducted in order to identify the effects of a subway line in toronto on the values of housing units the modal choice model is used for the estimation of the direct benefits from the improvement in transportation and the hedonic price equations for the identification of subway effects on housing prices empirical results indicate that the direct savings in commuting costs have been capitalized into housing values

public investment and economic growth this article uses an extension of mankiw romer and weil s augmented solow swan growth model to examine whether public investment has a distinct role as a determinant of economic growth it considers both the predictions of the model in steady state and in transition to steady state for the steady state model there is no significant effect from public investment on the level of output per worker using standard ordinary least squares ols methods for the transition model it observes a significant contribution to economic growth from public investment when instrumental variables methods are used however the associated standard errors are much larger and the contribution of public investment is statistically insignificant

regional earnings differences in great britain evidence from the new earnings survey hemmings p j 1991 regional earnings differences in great britain evidence from the new earnings survey reg studies 25 123 133 previous analysis comparing earnings between regions of great britain has concentrated upon the earnings of male employees using a large micro data base this paper takes a broader approach by examining earnings differences for female and part time employees as well as male employees human capital models are used to explain the variation in earnings in terms of characteristic differences and reward effects a restricted model with no regional element is tested against more general models which allow for regional variation in the constant term only and in both the constant and coefficients of the equations the most general model indicates that equations for the earnings of males display greater regional heterogeneity than those for females whilst the south east of england is the most distinctive region in terms of employee characteristics and in the returns to those e

local public works and intergovernmental transfers under asymmetric information abstract this paper studies local public works decisions in a hierarchical setting under bidimensional asymmetric information a local authority plans to undertake a public work and delegates its construction to a firm the federal government decides whether to fund the project without being informed of either the project s benefit or the constructor s efficiency the local authority knows these values to deal with this informational gap the federal government designs a public work contract specifying transfers to the local authority and to the firm we show under which circumstances cost sharing and compensations emerge as incentive devices then we identify which projects are effectively constructed more works with low high benefits are undertaken shut down than under full information

linking local business with global growth opportunities the role of infrastructure infrastructure is instrumental when it comes to linking local businesses with their global growth opportunities this paper shows that by making this link the transport network can act as a catalyst for regional economic growth using a novel approach we find that firms in regions with a more developed transport infrastructure are better placed to benefit from positive growth opportunities than those in regions with a less well developed transport network this advantage is most pronounced in times of economic slack making a better transport network a key ingredient for economic recovery it is against this background that the recent slowdown in infrastructure investment in europe is worrisome but it is through this channel among others that the substantial ramp up of activity by the european investment bank is expected to foster growth and enhance competitiveness in europe

leviathan and competition among jurisdictions the case of benefit taxation abstract this paper shows that interjurisdictional competition for mobile factors of production forces the government to raise the efficiency of the public sector and thus helps to tame leviathan governments however this result is derived under some restrictive assumptions concerning the kind of tax policy used by the government in the case of benefit taxes e g user charges a leviathan may be tamed by interjurisdictional competition whereas this is not necessarily true in the case of lum sum taxes

comparing the new earnings survey nes and the labour force survey lfs an analysis of the differences between the data sets and their implications for the pattern of geographical pay in the uk ma a roberts e elliott r f bell d and scott a 2006 comparing the new earnings survey nes and the labour force survey lfs an analysis of the differences between the data sets and their implications for the pattern of geographical pay in the uk regional studies 40 645 665 the labour force survey lfs and the new earnings survey nes are the most widely used data sets for analysing pay in britain the paper details the key differences between the two and assesses the impact of their use for studying geographical wage differences the pattern observed is sensitive to the differences in data sets to differences in the sample populations the questions asked about pay and working hours and how hourly pay is measured recommendations are made on which data set should be used for what purposes as well as comments on the expected improvements that will result from the introduction of the annual survey of hours and earnings ashe ma a roberts e elliott r f bell d et scott a 2006

public infrastructure and wages public capital s role as a productive input and household amenity production function studies typically conclude that public capital plays little role in enhancing productivity however others have found that infrastructure and employment growth are positively related these apparently conflicting results can be reconciled if public capital serves as a household amenity that increases labor supply without dramatically increasing productivity this study examines the impact of public capital on wages in order to assess whether productivity or amenity effects dominate for the economy as a whole the results suggest that highway s strongest role is as a household amenity however for the manufacturing sector the productivity effect of highways appears to dominate

the contribution of local public infrastructure to private productivity and its political economy evidence from a panel of large german cities this paper proposes a simultaneous equation approach to theestimation of the contribution of infrastructure accumulationto private production a political economy model for theallocation of public infrastructure investment grants isformulated our empirical findings using a panel of largegerman cities for the years 1980 1986 and 1988 suggest thatcities ruled by a council sharing the state bundesland government s current political affiliation were particularlysuccessful in attracting infrastructure investment grants with regard to the contribution of infrastructure accumulationto growth we find that public capital is a significant factorin private production moreover at least for the samplestudied we find that simultaneity between output and publiccapital is weak thus feedback effects from output toinfrastructure are negligible

public capital and total factor productivity new evidence from the italian regions 1970 98 destefanis s and sena v 2005 public capital and total factor productivity new evidence from the italian regions 1970 98 regional studies 39 603 618 this paper analyses the relationship between industrial total factor productivity and public capital across the 20 italian administrative regions it adds upon the existing literature in a number of ways it analyses a longer period 1970 98 it allows for the role of human capital accumulation it tests for the existence of a long run relationship between total factor productivity and public capital through previously suggested panel techniques and for weak exogeneity of public capital and it assesses the significance of public capital within a non parametric set up based on the free disposal hull the results confirm that public capital has a significant impact on the evolution of total factor productivity particularly in the southern regions this impact is mainly ascribed to the core infrastructures road and airports harbours railroads w

crowding out the role of state companies and the dynamics of industrial competitiveness in india this article examines growth patterns of government companies in india whether their presence has crowded out private entrepreneurial activity and whether there has been a decline in the competitiveness of india s industry measured as relative productive efficiency for a 45 year period from 1957 1958 to 2001 2002 there was a significant growth in the number of government companies in india that effectively crowded out the entry and growth of private enterprise this took place from the mid to late 1950s to the late 1980s and early 1990s correspondingly the amount of private equity capital invested in firms declined until the late 1980s and early 1990s when there was an upsurge of private investment activity another feature was that a small number of government companies absorbed most of the corporate sector equity investment in india the growth in the share of government companies in india that crowded out the entry and growth of private enterprises has had a significantly negative effect on india s industrial competitiveness after the introduction of reforms in 1991 there has been a significant crowding in by private enterprises displacing the government companies from their key position as holders of a very large portion of equity capital and also reversing the trend in the decline of competitiveness of indian industry as a whole copyright 2009 oxford university press

public investment and regional inequality in rural china this paper develops a method for decomposing the contributions of various types of public investment to regional inequality and applies the method to rural china public investments are found to have contributed to production growth in both the agricultural and rural non agricultural sectors but their contributions to regional inequality have differed by type of investment and the region in which they are made all types of investment in the least developed western region reduce regional inequality whereas additional investments in the coastal and central regions worsen regional inequality investments in rural education and agricultural r d in the western region have the largest and most favorable impacts on reducing regional inequality

what shapes are overtime premium schedules some evidence from japan the uk and the us we provide estimates of the shapes of overtime premium schedules for three contrasting economies based on two digit industries through time at one end of the spectrum the united kingdom has no legislation concerning the minimum premium rate while at the other the united states mandates a high minimum premium of 1 5 times the straight time hourly rate in between these extremes japan sets a minimum premium of 1 25 we concentrate in particular on the question of whether the premium rises in average hours

a new approach to test the effects of decentralization on public infrastructure investment this paper proposes a simple theoretical framework to obtain a tractable equation that considers the traditional criteria for allocating public infrastructure investment and variables to capture de

is public expenditure productive abstract this paper considers the relationship between aggregate productivity and stock and flow government spending variables the empirical results indicate that i the nonmilitary public capital stock is dramatically more important in determining productivity than is either the flow of nonmilitary or military spending ii military capital bears little relation to productivity and iii a core infrastructure of streets highways airports mass transit sewers water systems etc has most explanatory power for productivity the paper also suggests an important role for the net public capital stock in the productivity slowdown of the last fifteen years

infrastructure and education as instruments of regional policy evidence from spain regional policy and spain infrastructure and education as instruments of regional policy evidence from spain governments have often tried to influence the regional distribution of economic activity through supply side measures such as investment in training and infrastructure using evidence from spain we examine whether such policies can have an impact and whether they have done so in the past our results indicate that disparities in the stocks of human and public capital account for a third of observed regional inequality about evenly split between the two factors hence public investment can in principle be used to reduce regional disparity its actual impact however will depend both on its overall volume and on the extent to which its regional allocation does indeed vary with regional need in spain investment in infrastructure has made only a small contribution to regional convergence primarily because it has not in practice been allocated to redistribute across regions to any great extent in contrast efrd transfers have clearly been allocated among regions with redistribution in mind the impact of the fund has been significant but it has been limited by the relatively small size of the programme angel de la fuente and xavier vives

efficiency adjusted public capital and growth summary this paper constructs an efficiency adjusted public capital stock series and re examines the public capital and growth relationship the paper also examines the effects of four specific stages of the public investment process appraisal selection implementation and evaluation on capital accumulation and growth the results show that public capital is a significant contributor to economic growth the quality of public investment as measured by variables capturing the adequacy of project selection and implementation is statistically significant in explaining variations in economic growth a result mainly driven by low income countries

services sector and economic growth in india this study examines the long run equilibrium and short run dynamic relationship between services sector and gross domestic product gdp and between services and nonservices sectors in india the model is estimated using the optimal single equation and the maximum likelihood system estimators all the estimators consistently suggest the cointegrating relationship between services sector and gdp as well as between services and nonservices sectors the estimates of long run elasticity parameters are statistically significant and dimensionally consistent across the estimators the conventional cumulative sum cusum and the new cusum and moving sum mosum tests suggest the stability of the equilibrium residuals and reinforce the cointegrating relationship between the model series the error correction model provides some support for unidirectional granger causality from services sector to gdp the impulse response and variance decomposition analyses instead suggest the bidirectional causality between servic

earnings unemployment and housing in britain this paper models regional earnings and unemployment in the ten regions of great britain between 1972 and 1995 paying particular attention to their interaction and to the important influence of the housing market in contrast to blanchard and katz 1992 1997 for the united states we find less persistence in british regional earnings differentials but greater persistence in regional unemployment rates we find no evidence of a negative effect of the overall unemployment rate on the earnings of men in non manual or women in full time employment however for manual men we find a significant elasticity of around 0 07 comparable with blanchflower and oswald 1994 copyright 2001 john wiley sons ltd

public infrastructure and regional economic development a simultaneous equations approach an analysis of how central bank exchange market intervention can affect both the level of exchange rates and the risk premium in asset returns showing how the risk premium is related to the conditional variances of intervention and other exogenous processes