Work

The Effect of Public Capital in State-Level Production Functions Reconsidered

Year: 1996

Type: article

Abstract: Using a panel data set for the forty-eight contiguous states from 1970 to 1983, several estimates are provided of a Cobb-Douglas production function with three types of public capital as inputs. Various specification tests are systematically applied to test for both random and fixed state effects, nonstationarity, endogeneity of the private inputs, and measurement error. In the preferred specification, which is first differences with fixed state effects, the public capital variables are not significant, while the fixed state effects and private input variables are significant. Copyright 1996 by MIT Press.

Source: The Review of Economics and Statistics

DOI: 10.2307/2109857

Authors: Teresa Garcia-Mila, Therese J. McGuire, Robert H. Porter

Language: English

Topic: Fiscal Policy and Economic Growth

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W1968347472

FWCI: 34.27

Cites:

Cited by: 418

Related to: 10