|||||Translog; Log<br>levels|SUR|The marginal product of infra|structure is 0.248*||
|---|---|---|---|---|---|---|---|---|
|||||Generalized||Cost elasticit of ublic in|rastructure has neative sin (-||
||Sturm (1997)|Netherland<br>National|1949 to<br>1993|McFadden<br>Cost Function,<br>Log levels|SUR|y p<br>0.676***). Sheltered sector<br>more from infrastructure inve|g g<br>of the Dutch economy benefits<br>stment|Common trends induced spurious<br>correlation; Reverse causality;|
||Demetriades<br>and Mamuneas<br>(2000)|12 OECD<br>Economies|1972 to<br>1991|Levels|SUR|Public infrastructure capital<br>profit (0.36*** to 2.06***) in|has significant positive effects on<br>all runs|Reverse<br>causality;<br>Measurement<br>error|
||<br>Paul, Sahni, and<br>Biswal (2004)|Canadian<br>Manufacturi<br>ng Industries|1961 to<br>1995|Translog Cost<br>Function; Log<br>levels|SUR|For most industries, the co<br>between -0.10 and -0.40<br>implying cost saving|st elasticities vary in the range<br>and are statistically significant,|Endogeneity; Common trends|
|**ent**|Munnell and<br>Cook (1990)|US States|1970 to<br>1986|Levels|OLS|State’s investment in public<br>impact (0.35***) on that stat|capital had a significant positive<br>e’s private employment growth|Common trends induced spurious<br>correlation;<br>Production<br>function<br>estimate is inadequate|
|**Employm**|Seitz (2000)|West<br>German<br>cities|1980 to<br>1995|Log levels|FE|An increase in the growth rat<br>by 1 percent increases emplo<br>growth by 0.15 percent and i<br>percent|e of the local public capital stock<br>yment in the manufacturing sector<br>n the service sector by about 0.05|Reverse<br>causality;<br>Measurement<br>error|
||Demetriades<br>and Mamuneas<br>(2000)|12 OECD<br>Economies|1972 to<br>1991|Levels|SUR|The effect of public capital o<br>runs|n labor demands is positive in all|Reverse<br>causality;<br>Measurement<br>error|
||Duffy-Deno<br>and Eberts<br>(1991)|US<br>Metropolitan<br>areas|1980 to<br>1984|Log Levels|OLS<br>2SLS|Both public investment and p<br>and statistically significant<br>income. OLS and 2SLS estim<br>for public capital stock (0.0<br>public investment (0.037* vs|ublic capital stock have a positive<br>effect on per capita personal<br>ates are not statistically different<br>94* vs 0.081*) but they are for<br>0.113*)||
|**come**||||||Highway|Aggregate average annual<br>earnings and manufacturing<br>production worker hourly|Measurement error; Endogeneity|
|**In**|Dalenberg and<br>Partridge|US States|1972 to<br>|Log Levels|FE|Net Public Capital|<br>wages are positively related to<br>highway and net public capital<br>without statistical significance||
||<br>(1997)||1991||2SLS|Highway|For the aggregate private<br>sector increased highways||
|||||||Net Public Capital|,<br>reduce eanrings (-0.015***)||
|**GDP**<br>**Growth**<br>**Rate**|Hulten and<br>Schwab (1991)|US Regions|1970 to<br>1986|First<br>Derivative;<br>Levels|OLS|Value added-MFP growth<br>Gross Q-MFP growth|Link between public<br>infrastructure and economic<br>performance is weak. Estimates<br>are -0.1795 and -0.344<br>respectively|Implausible coefficients for labor<br>and private capital as well as for<br>public capital due to first<br>differencing; First differencing<br>destroys long-term relationship in<br>the data; Production function|

17