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Identifier to cite or link to this item: https://hdl.handle.net/10086/84420

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Title
New Approach to Estimating the Productivity of Public Capital : Evidence from 22 OECD Countries
Creator
Creator Name
MORITA, Hiroshi MORITA, Hiroshi
Affiliation
Affiliation Name
Institute of Science Tokyo
Editor
Contributor Name
Hitotsubashi Institute for Advanced Study, Hitotsubashi University
Key Word
Public capital
Hierarchical panel VAR model
Max share identification
JEL
E62
H54
C32
C33
Abstract
Investigating the productivity of public capital is a long-standing issue in one strand of macroeconomic literature. This study develops a new approach to estimate the output elasticity of public capital using a vector autoregressive (VAR) model with identification restrictions derived from a theoretical model. Our empirical analysis of 22 OECD countries for the period 1960–2019 reveals that public capital accumulation has a positive effect on GDP in both the short- and longrun horizons in all countries, supporting both demand-stimulating and growthenhancing effects. Furthermore, the estimated output elasticity of public capital lies within a reasonable range, between 0 and 0.5, and, as in the literature, shows substantial differences across countries. Therefore, the proposed methodology is valid for studying public capital productivity.
Publisher
Hitotsubashi Institute for Advanced Study, Hitotsubashi University
Issued Date
2024-10-30
Language
English(eng)
Resource Type
technical report
Version Type
VoR
Is Part OfRelation -
Related Title
Discussion paper series ; No. HIAS-E-141
Number of Pages
31
Appears in Collections
Discussion paper series / Hitotsubashi Institute for Advanced Study, Hitotsubashi University
URL
https://hdl.handle.net/10086/84420