Dynamic Macroeconomic Effects of Public Capital: Evidence from Regional Italian Data

摘要: This paper assesses the effects of public capital in Italy on main macroeconomic aggregates: GDP, private and labour. A cointegrated vector autoregressive (VAR) model, line with recent advancements field, allows us to take into account complex nexus direct indirect links between variables. We find a persistent increase GDP response positive shock capital; this result is mainly attributable strong stimulus exerted by infrastructures (crowding in). The are quite pervasive across Italy, albeit differing extents. In particular, higher elasticity estimated for South, whereas marginal productivity turns out be Centre-North. suggests that has lower economic return bearing existence potential conflict equity efficiency goals. Finally, we indirectly document spillover at regional level, allowing individual regions benefit from endowment rest country.