Roads to Prosperity or Bridges to Nowhere? Theory and Evidence on the Impact of Public Infrastructure Investment
Year: 2013
Type: article
Abstract: Households use their disposable income to consume, invest in domestic capital, and buy state-contingent assets Bt+1(s), which pays one unit of Home consumption goods if a particular state of nature s occurs in period t + 1, at price pbt,t+1. We assume that, as with aggregate consumption, aggregate private investment is a CES composite of Home and Foreign tradable goods with identical weight and elasticity. Private capital accumulates according to the following law of motion
Source: NBER Macroeconomics Annual
DOI: 10.1086/669173
Authors: Sylvain Leduc, Daniel Wilson
Institution: Federal Reserve Bank of San Francisco
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2111898692