The Effect of Public Capital on Aggregate Output. Empirical Evidence for 22 OECD Countries
Jan-Erik Wesselhöft, Helmut-Schmidt-University Hamburg, 2013-05-06
Based on new estimates of public and private capital stocks for 22 OECD countries
we study the dynamic effect of public capital on the real gross domestic product
using a vector autoregression approach. Whereas most former studies put effort on
examining the effects of public capital in a single country, this paper covers a large
set of OECD countries. The results show that public capital has a positive effect on
output in the short-, medium- and long-run in most countries. In countries where the
effect is negative, possible explanations as the different productivities of investments,
crowding out or high growth rates of government debt are analyzed.
| year: | 2013 |
| volume: | 64, Issue 1 |
| pages: | 51-72 |
| JEL: | C32, E60, H54 |
| keywords: | cointegration oecd_countries public_capital_stock var_model |
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