An Examination of Public Capital's Role in Production

摘要: This paper examines whether or not the long-term government bond rate could reasonably be employed as of return on public capital when calculating sector gross domestic product. It finds that is lower than often reported and roughly consistent with private capital. Given there a range estimates are plausible, concludes long-run used conservative estimate for infrastructure. Previous studies have shown production function tend to find rates implausibly large, while cost appear more reasonable. shows multifactor productivity (MFP) growth behave similarly, argues impact overstate its result, catching part what belongs in MFP. also similarity between MFP leads large confidence interval around elasticity derived from framework. The then proceeds by generating estimated first without growth. uses pinpoint precisely marginal savings Importantly, found function. associated overlapping cover extends average