short run price and income elasticity of gasoline demand evidence from lebanon abstract we empirically estimate the demand for gasoline in the presence of multiple shifts caused by structural breaks using monthly data from lebanon covering the period 2000 m1 2010 m12 consistent with most studies in the literature our study reports that gasoline is price and income inelastic in the short run however when a single and multiple breaks are introduced the consumers responsiveness to gasoline price and income increase since both price and income elasticity are sensitive to structural changes a policy that pleads for a flat excise tax may not be optimal with respect to either the cyclical pattern of government revenues or the internalization of international environment standards

government capital and the production function for u s private output abstract theoretical and policy discussions make unsupported assumptions about the productivity of capital which governments own estimates of an aggregate production function for u s private business 1949 1973 show government capital to be significant statistically and in economic terms

fuel consumption for road transport in the usa abstract this study provides both a historical analysis of fuel demand for road transport and an example of using econometric results for projections fuel consumption by all motor vehicles in the usa has been analysed by splitting total demand into passenger car truck and other demands distance travelled and fuel efficiency equations have been estimated for both the passenger car fleet and trucks an essentially five equation model has been constructed and used to simulate likely fuel demand patterns up to 1990

energy as a factor of production and entropy as a pollution indicator in macroeconomic modelling abstract fluctuating energy prices and the environment s limited capacity for absorbing pollution constitute significant uncertainties for future industrial evolution solving a set of differential equations and using the simplex algorithm in linear programming we look into the questions how changing energy inputs and prices have affected industrial growth in the past and how the energy system can be optimized so that pollution becomes minimum in the future we obtain production functions which depend linearly on energy and exponentially on the ratios of labor capital and energy capital they describe well the growth of output in west germany and the u s a during the last two decades and the responses to theenergy price explosions energy conservation was an important response element the most optimistic possible savings of primary energy by heat exchangers heat pumps and cogeneration at the present fixed energy demand profiles are computed to be 54 in the netherlands 36 in west germany and 59 in japan a pollution indicator entropy production is proposed and incorporated in a model of enviromental constraints on industrial growth

energy demand in ghana a disaggregated analysis this paper presents a comprehensive analysis of energy demand in ghana by estimating demand functions for key disaggregated energy components including gasoline diesel liquefied petroleum gas lpg kerosene biomass residual fuel oil rfo and electricity our results show that energy prices income urbanization and economic structure are significant demand drivers of the different energy types in ghana with varying estimated elasticities further there is evidence of high degree of inter fuel substitution in energy demand in ghana particularly from gasoline diesel and kerosene towards lpg consumption we recommend among different policy options a customization of energy price subsidization policies especially on lpg to reduce the unintended beneficiary dilemma or spillover effect of current government policy other policies such as intensification of energy conservation programs and market entry of independent power trading companies to enhance energy service delivery through competition are also discussed

a cointegration analysis of gasoline demand in the united states time series estimation of gasoline demand elasticities often does not take into account the possibility of nonstationarity in the underlying data which may render the parameter estimates spurious studies have shown that the time trending variables used to explain gasoline demand could be difference stationary and therefore may require cointegration analysis to assess the relationship among the trending variables in this work we use the cointegration technique to derive long run and short run demand elasticities of noncommercial gasoline consumption using time series data for the usa from 1949 to 2004 we also attempt to incorporate the presence of a structural break in the data generation process of the time trending variables our results show that the consumption of gasoline and lifetime income have a long term stable relationship after the second oil shock of 1978 prior to the first oil shock of 1973 no such long run relationship could be established through cointegration

public capital and the demand for private inputs abstract this paper investigates the impact the provision of public capital has on the demand for private inputs using a cost function with public capital included as a fixed unpaid factor of production the productivity effects of public capital provision are recovered by using duality theory the model is applied to a panel of 31 two digit industries of the west german manufacturing industry it is shown that private and public capital are complements whereas a substitutive relation emerges for labour the empirical evidence suggests that the provision of public capital has a stabilizing but steadily decreasing impact on private input demand

balanced growth and public capital an empirical analysis the balanced growth restrictions implied by the neoclassical growth model imply that output the private capital stock and the public capital stock share the same stochastic trend we analyse the postwar us data on real output real private capital stock and real public capital stock and find that the balanced growth restrictions cannot be rejected by the data removing the common stochastic trend from each series allows the estimation of output elasticities that is free from the spurious regression problem the results support aschauer s 1989 claim that at the margin public capital is more productive than private capital

the economic benefits of public infrastructure the impact of the provision of public infrastructure on private economic activity is examined using a flexible functional form of a cost function with public infrastructure as an additional extern

government capital and private output in the united states additional evidence abstract aggregate production functions for private output are estimated from annual u s data for the period 1948 1985 the estimates indicate government capital has an important positive effect on private output the effect of state and local governments capital is large and significant whereas the effect of federal capital appears small and statistically insignificant

efficient energy saving targets for apec economies abstract energy saving target ratios estr for 17 apec economies during 1991 2000 are computed in a total factor framework all nominal variables are transformed into real variables by the purchasing power parity ppp at the 1995 price level the data envelopment analysis dea approach is used to find the energy saving target est for apec economies without reducing their maximum potential gross domestic productions gdps in each year energy labor and capital are the three inputs while gdp is the single output our major findings are as follows 1 china has the largest est up to almost half of its current usage 2 hong kong the philippines and the united states have the highest energy efficiency 3 the energy efficiency generally increases for apec economies except for canada and new zealand 4 chile mexico and taiwan have significantly improved their energy efficiency in the last 5 years 5 an inverted u shape relation exists between per capita est and per capita gdp 6 estr has a positive relation with the value added percentage of gdp of the industry sector and a negative relation with that of the service sector

production and high energy prices a case of some pan pacific countries abstract to explore the relationship between price of energy energy consumption and output this paper suggests a simultaneous equation system using time series data for five pan pacific countries canada japan korea the philippines and the usa and applying the two stage least squares method the above system of equations is estimated for each of the five countries short run gdp elasticity with respect to energy is nearly the same 0 3 for all four industrialized countries short run price elasticity of energy demand is between 0 20 and 0 08 for the four industrialized economies and 0 37 for the philippines

productive government expenditures and long run growth the purpose of this paper is to review some of the recent developments in endogenous growth models specifically our focus is on the growth effects of productive government spending in dynamic general equilibrium models we use a simple overlapping generations model as our basic framework and illustrate the role of taxes and spending we then examine several related issues nonrivalry in publicly provided goods existence and uniqueness of competitive equilibrium endogenous public policy ways of financing public expenditures composition of publicly provided goods and services and private alternatives finally we review some empirical results related to output elasticity of public capital and educational expenditures

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

regional productivity variation and the impact of public capital stock an analysis with spatial interaction with reference to spain in this article we examine whether variations in the level of public capital across spain s provinces affected productivity levels over the period 1996 to 2005 the analysis is motivated by contemporary urban economics theory involving a production function for the competitive sector of the economy industry which includes the level of composite services derived from service firms under monopolistic competition the outcome is potentially increasing returns to scale resulting from pecuniary externalities deriving from internal increasing returns in the monopolistic competition sector we extend the production function by also making log labour efficiency a function of log total public capital stock and log human capital stock leading to a simple and empirically tractable reduced form linking productivity level to density of employment human capital and public capital stock the model is further extended to include technological externalities or spillovers across provinces using panel data

income taxes public investment and welfare in a growing economy abstract in a growth model with public capital and a spillover externality from private capital we find that income taxes as part of an optimal fiscal policy is a more common result than usually thought the commitment to finance an exogenous component of public expenditures in the form of an exogenous fraction of output may lead to the optimality of positive income taxes this result is robust to alternative assumptions on depreciation rates and preferences we show that welfare losses from deviations from the optimal policy are always smaller when compensated with changes in income taxes than when adjusting lump sum taxes

public capital and total factor productivity this paper examines the impact of the stock of public capital on output levels and productivity growth rates in the united states the analysis is based on the estimation of parameters in a translog profit function prices of intermediate goods are introduced into a quasiproduction function for value added recently developed econometric techniques for dealing with nonstationary time series are used in the estimation the authors find that the services of public capital are an important part of the production process and that about 40 percent of the productivity decline is explained by a fall in the public capital labor ratio copyright 1993 by economics department of the university of pennsylvania and the osaka university institute of social and economic research association

energy and economic growth in the usa a multivariate approach abstract this paper examines the causal relationship between gdp and energy use for the period 1947 90 in the usa the relationship between energy use and economic growth has been examined by both biophysical and neoclassical economists in particular several studies have tested for the presence of a causal relationship in the granger sense between energy use and economic growth however these tests do not allow a direct test of the relative explanatory powers of the neoclassical and biophysical models a multivariate adaptation of the test vector autoregression var does allow such a test a var of gdp energy use capital stock and employment is estimated and granger tests for causal relationships between the variables are carried out although there is no evidence that gross energy use granger causes gdp a measure of final energy use adjusted for changing fuel composition does granger cause gdp

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

energy efficiency and the slump in labour productivity in the usa energy consumption is included in an aggregate cobb douglas production function for the usa the data suggest that energy conservation has not reduced the growth rate for real gnp by more than 0 3 percentage points and that less than one fifth of the overall slump in labour productivity since 1973 should be attributed to higher energy prices

modelling energy demand of developing countries are the specific features adequately captured abstract this paper critically reviews existing energy demand forecasting methodologies highlighting the methodological diversities and developments over the past four decades in order to investigate whether the existing energy demand models are appropriate for capturing the specific features of developing countries the study finds that two types of approaches econometric and end use accounting are commonly used in the existing energy demand models although energy demand models have greatly evolved since the early seventies key issues such as the poor rich and urban rural divides traditional energy resources and differentiation between commercial and non commercial energy commodities are often poorly reflected in these models while the end use energy accounting models with detailed sectoral representations produce more realistic projections as compared to the econometric models they still suffer from huge data deficiencies especially in developing countries development and maintenance of more detailed energy databases further development of models to better reflect developing country context and institutionalizing the modelling capacity in developing countries are the key requirements for energy demand modelling to deliver richer and more reliable input to policy formulation in developing countries

empirical studies on the relationship between public and private investment and gdp growth this study performs empirical studies on the interaction between public and private investment and gdp growth for japan and the usa since the data for each country used show features that are quite different from each other empirical methods of gmm generalized method of moments and ols ordinary least squares are accordingly applied to japan and the usa respectively the empirical results suggest that both public and private investment make great contributions to japanese economic growth while the us private investment seems to play a much more significant role than public investment

is the price effect on fuel consumption symmetric some evidence from an empirical study abstract we generally consider that the price elasticity of the energy demand is quite small but it appears that strong increases in gasoline price lead to modifications in consumer behaviors the high volatility of petroleum prices and the strong increases since the beginning of 2000 justify an analysis of price effects on gasoline consumption we estimate the effects of price variations on gasoline consumption in the united states and india we use a co integration modelling to test for long run relationship between gasoline consumption income price and vehicle ownership in the two countries we use an error correction model to test for short run prices effects and more precisely for asymmetric effects on demand of increases and decreases in gasoline prices the main conclusions are the following concerning the united states the long term price elasticity is relatively high for an industrialised country because gasoline taxes are low but we show that households are more sensitive to a price increase than a price decrease about india price elasticity in the long run is quite high but is quite small in the short run it is not surprising for an emergent country it seems that there is no asymmetric effect of price variations on gasoline consumption

empirical assessment of the determinants of road energy demand in greece this paper attempts to cast light on the determinants of road energy demand in greece for this purpose we used cointegration techniques and vector autoregression var analysis in order to capture short run and long run dynamics for gasoline and diesel demand respectively from the empirical analysis that covers the period 1978 2003 we find that in the long run gasoline energy demand appears to be price and income inelastic while diesel demand appears to be price inelastic and income elastic we also found that the absence of close substitutes in the road sector denotes the low level of energy switching in greece

the demand for gasoline in south africa an empirical analysis using co integration techniques abstract using the recently developed autoregressive distributed lag ardl bound testing approach to co integration suggested by pesaran et al pesaran m h shin y smith r j bounds testing approaches to the analysis of level relationships journal of applied econometrics 2001 16 3 289 326 we empirically analyzed the long run relationship among the variables in the aggregate gasoline demand function over the period 1978 2005 our study confirms the existence of a co integrating relationship the estimated price and income elasticities of 0 47 and 0 36 imply that gasoline demand in south africa is price and income inelastic

on the causal nexus of road transport co2 emissions and macroeconomic variables in tunisia evidence from combined cointegration tests abstract this paper investigates the causal relationship between road transportation energy consumption fuel prices transport sector value added and co2 emissions in tunisia for the period of 1980 2012 we apply the newly developed combined cointegration test proposed by bayer c hanck c combining non cointegration tests j time ser anal 2013 34 1 83 95 and the ardl bounds testing approach to cointegration for establishing the existence of long run relationship in presence of structural breaks the direction of causality between these variables is determined via vector error correction model vecm our empirical exercise reveals that cointegration is present energy consumption adds in co2 emissions fuel prices decline co2 emissions road infrastructure boosts co2 emissions transport value added also increases co2 emissions the causality analysis indicates the bidirectional casual relationship between energy consumption and co2 emissions road infrastructure causes co2 emissions and similar is true from opposite side in granger sense the bidirectional causality is also found between transport value added and co2 emissions fuel prices cause co2 emissions energy consumption road infrastructure and transport value added in granger sense this paper provides new insights to policy makers for designing a comprehensive energy transport and environment policies for sustainable economic growth in long run

investigating the causal relationship between transport infrastructure transport energy consumption and economic growth in tunisia this study investigates the causal relationships between transportation infrastructure rail and road the transport value added gross capital formation transportation energy consumption and transport co2 emissions in tunisia over the period of 1971 2012 we use the johansen multivariate cointegration approach generalized impulse response functions and variance decomposition technique to examine the effect of transportation infrastructure on economic growth and the environment these findings show the existence of unidirectional long run causality running from transport value added road transport related energy consumption transport co2 emissions and gross capital formation to road infrastructure it also finds a unidirectional long run causality running from railway infrastructure the transport value added gross capital formation and transport co2 emissions to rail transport related energy consumption besides we find a unidirectional short run causality running from the road infrastructure to transport value added and a unidirectional short run causality running from road transport related energy consumption to transport co2 emissions furthermore there are unidirectional short run causality running from railway infrastructure to rail transport related energy consumption and a unidirectional short run causality running from transport co2 emissions to rail transport related energy consumption these results are very important in terms of the choice of government policy decisions our results cast a new dimension to the importance of investing in infrastructure as a promising device to generate higher economic growth

short and long run elasticities of gasoline demand in india an empirical analysis using cointegration techniques abstract in developing countries like india consumption of petroleum products has implications on its balance of payments economic growth and fiscal deficit gasoline is one of the prime petroleum products in this paper the relationship between gasoline demand national income and price of gasoline is empirically examined using cointegration and error correction techniques the time frame of the analysis is from 1972 1973 to 1993 1994 it has been found that gasoline demand is likely to increase significantly for a given increase in the gross domestic product the increase will be larger in the long run 2 682 than in the short run 1 178 gasoline demand is relatively inelastic to price changes both in the long and short terms the error correction model has shown that gasoline demand adjusts to their respective long run equilibrium at a relatively slow rate with about 28 of adjustment taking place in the first year

testing and estimating time varying elasticities of swiss gasoline demand this paper is intended to test and estimate time varying elasticities for gasoline demand in switzerland for this purpose a smooth time varying cointegrating parameters model is investigated in order to describe smooth mutations of the swiss gasoline demand the methodology based on chebyshev polynomials is rigorously outlined our empirical finding states that the time invariance assumption does not hold for long run price and income elasticities furthermore they highlight that gasoline demand passed through some periods of sensitivity and non sensitivity with respect to the price our empirical statements are of great importance to assess the performance of a gasoline tax as an instrument for co2 reduction policy indeed such an instrument can contribute to reduce emissions of greenhouse gases only if the demand is not fully inelastic with respect to the price our results suggest that such a carbon tax would not be always suitable since the price elasticity is found not stable over time and not always significant

elasticities of gasoline demand in switzerland abstract using cointegration techniques we investigate the determinants of gasoline demand in switzerland over the period 1970 2008 we obtain a very weak price elasticity of 0 09 in the short run and 0 34 in the long run for fuel demand i e gasoline plus diesel the corresponding price elasticities are 0 08 and 0 27 our rich dataset allows working with quarterly data and with more explicative variables than usual in this literature in addition to the traditional price and income variables we account for variables like vehicle stocks fuel prices in neighbouring countries oil shocks and fuel taxes all of these additional variables are found to be significant determinants of demand

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

a marginal measure of energy efficiency the shadow value abstract economists are well aware of the importance of marginal versus average measures of energy efficiency yet in the energy literature there is no consensus on the appropriate method for defining and measuring energy efficiency this paper sets out the shadow value of energy as a proper and meaningful marginal energy efficiency index a restricted profit function is used to model the shadow value we explore four scenarios to characterize and evaluate the shadow value of energy a within country comparison of different production processes with different energy requirements a comparison of different countries with different resource endowment a government policy to impose a tax to alter the shadow value to address environmental issues and a within country comparison of externalities arising from two sources of energy a comparative static analysis is carried out to sign the functional arguments defined for the shadow value

elasticities of transport fuels at times of economic crisis an empirical analysis for spain abstract this paper provides an updated calculation of the price and income responsiveness of spanish consumers of transport fuels with an explicit exploration of the effects of the recent economic crisis we examine separate gasoline and diesel demand models using a set of estimators on a panel of 16 spanish regions over the period 1999 2015 the paper confirms the persistence of low own price elasticities both for diesel and gasoline in the short and long runs it also shows that the crisis of 2008 2013 slightly increased the price elasticity of demand for transport fuels with a higher effect on diesel than on gasoline by contrary the crisis slightly reduced the income elasticity of transport fuel demand given the intensity and length of the economic recession in spain the results of this paper may be useful to anticipate the effects of domestic public policies that impact transport fuel prices as well as to advance some of the potential consequences of crises elsewhere

energy prices and the aggregate production function abstract this paper tests the hypothesis that the effects of increases and decreases in relative energy prices on output are symmetrical alternative ratchet specifications are embedded in an aggregate production function for private sector output and estimated using us data the major finding is that the relationship between relative energy prices and output is highly asymmetrical increases in relative energy prices above previous peak levels have a substantial deleterious effect on output decreases in relative energy prices and increases below the previous peak have no effect on output

road transport energy demand in australia a cointegration approach abstract a cointegration framework is used to examine the short run and long run characteristics of energy demand in the australian road transport sector a lagged endogenous equation based on a partial adjustment process is proposed and estimated results indicate that energy demand output and real energy prices are integrated of order 1 and cointegrated the long run output and price elasticities of energy demand are estimated to be 0 52 and 0 12 respectively causality tests ervealed a bidirectional causality path between output and energy demand and a unidirectional path from energy consumption to prices no other causality paths between output prices and energy demand are detected the short run output elasticity of energy demand is estimated to be 0 25 based on an error correction model the short run price elasticity is found to be insignificant the inertia parameter is 0 48 corresponding to 95 of the demand adjustment occurring after five periods the results are compared with previous findings and the variations are partially attributed to the structural changes in the road transport sector in the 1980s some of which are discussed

estimating the demand for gasoline in developing countries senegal abstract this paper estimates the aggregate demand for gasoline in senegal from 1970 to 2008 the long term and short term elasticities of demand with respect to gasoline prices and income are of paramount interest in this study in senegal rising food prices unemployment and shortage of electric supply are always associated with the spiking cost of world oil prices to understand the external shocks of world oil price and demand for gasoline in senegal this study tested a log linear model against the linear model of the demand for oil function with lagged dependent variables as an explanatory variable here the linear specification of the demand for oil is rejected in this study in favor of the log linear the natural log transformation is typical when using high frequency data and significantly reduces skewness and kurtosis generally in this study i found that short run elasticity is smaller than long run elasticity and gasoline demand is inelastic with respect to both price and income for both the short and long runs in senegal this is why researcher like moosa posits that this assertion can be rationalised on the grounds that oil is such an important commodity that does not have close substitutes at least for its uses 1998 p 3

environment adjusted total factor energy efficiency of taiwan s service sectors this study computes the pure technical efficiency pte and energy saving target of taiwan s service sectors during 2001 2008 by using the input oriented data envelopment analysis dea approach with the assumption of a variable returns to scale vrs situation this paper further investigates the effects of industry characteristics on the energy saving target by applying the four stage dea proposed by fried et al 1999 we also calculate the pre adjusted and environment adjusted total factor energy efficiency tfee scores in these service sectors there are three inputs labor capital stock and energy consumption and a single output real gdp in the dea model the most energy efficient service sector is finance insurance and real estate which has an average tfee of 0 994 and an environment adjusted tfee eatfee of 0 807 the study utilizes the panel data random effects tobit regression model with the energy saving target est as the dependent variable those service industries with a larger gdp output have greater excess use of energy the capital labor ratio has a significantly positive effect while the time trend variable has a significantly negative impact on the est suggesting that future new capital investment should also be accompanied with energy saving technology in the service sectors

demand elasticities in oecd dynamical aspects abstract four models with different lag structures are used to express final energy demand in oecd from 1960 1982 as a function of real gdp and average energy price the income and long run price elasticities are not significantly dependent on the model specification but the koyck lag scheme estimated in its distributed lag form is found to give the most satisfactory results the statistical properties of the data together with evidence of trends in the elasticities both suggest that the period of falling real prices prior to 1971 is not comparable to the present period for the period after 1971 an income elsticity of 1 02 and a long run price elasticity of 0 37 are obtained

measuring global gasoline and diesel price and income elasticities abstract price and income elasticities of transport fuel demand have numerous applications they help forecast increases in fuel consumption as countries get richer they help develop appropriate tax policies to curtail consumption help determine how the transport fuel mix might evolve and show the price response to a fuel disruption given their usefulness it is understandable why hundreds of studies have focused on measuring such elasticities for gasoline and diesel fuel consumption in this paper i focus my attention on price and income elasticities in the existing studies to see what can be learned from them i summarize the elasticities from these historical studies i use statistical analysis to investigate whether income and price elasticities seem to be constant across countries with different incomes and prices although income and price elasticities for gasoline and diesel fuel are not found to be the same at high and low incomes and at high and low prices patterns emerge that allow me to develop suggested price and income elasticities for gasoline and diesel demand for over one hundred countries i adjust these elasticities for recent fuel mix policies and suggest an agenda of future research topics

fuel demand on uk roads and dieselisation of fuel economy abstract because of high oil prices and climate change policy governments are now seeking ways to improve new car fuel economy thus contributing to air quality and energy security one strategy is to increase dieselisation rates of the vehicle fleet recent trends in fuel economy show improvement since 1995 however efforts need to go further if the eu voluntary agreement targets on co 2 a greenhouse gas emission standard are to be achieved trends show diesel car sales have accelerated rapidly and that the advantage of new car fuel economy of diesel cars over gasoline ones is narrowing posing a new challenge we estimate the demand for new car fuel economy in the uk in the long run consumers buy fuel economy but not in the short run we found that long term income and price changes were the main drivers to achieve improvements particularly for diesel cars and that there is no break in the trend of fuel economy induced by the agreement adopted in the 1990s policy should target more closely both consumer choice of and use of diesel cars

infrastructure investment and canadian manufacturing productivity this paper examines the relationship between canadian public infrastructure and private output using a constant elasticity and substitution translog ces tl cost model to describe the interaction of the public and private sectors the ces tl was first specified by pollak et al 1984 we find public capital a substitute for private capital within the canadian manufacturing sector additionally the services of public capital enhance the productivity of private capital canadian manufacturing costs are characterized by economies of scale indicating that less than optimal plant sizes dominated canadian manufacturing sector during the study period advances in disembodied technical progress are also indicated

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

what have we learned from three decades of research on the productivity of public capital the last three decades have witnessed a great deal of research effort devoted to measuring the private output elasticity of public capital the wide range of available estimates have precluded any consensus so far however this paper reconciles the empirical findings of the literature by quantitatively analyzing a sample of 578 estimates collected from 68 studies for the 1983 2008 period using meta regression analysis we show how study design characteristics and publication bias can explain a large fraction of the variation across estimates we find a short run output elasticity of public capital supplied at the central government level of 0 083 which increases to 0 122 in the long run if in addition only core infrastructure at a regional local level of government is considered these estimates are almost doubled the average output elasticity of public capital amounts to 0 106 our results suggest that public capital is undersupplied in oecd economies

is public capital provision efficient abstract we examine whether public investment undertaken in australia over the last three decades satisfies conditions for intertemporal efficiency we find that the conditions are satisfied over the sample period but only after allowance for changes in the relative price of public and private capital in contrast to previous research we do not find any evidence of excessive returns to public investment rather the average real investment return for both private and public capital is estimated at about 9 per annum