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

Giacinto, Valter Di; Micucci, Giacinto; Montanaro, Pasqualino

doi:10.2139/ssrn.1601926

Cited by 23 publications

(7 citation statements)

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“…Kamps (2005), for a group of OECD countries including Italy, find a positive long‐run elasticity of public capital with respect to private capital, a negative effect on employment, and a positive albeit not significant effect on GDP. In an analysis of Italian regions, Di Giacinto et al. (2010) document a positive contribution of the public capital to output in all geographical areas of the Country.…”

Section: Related Literature and Motivations For The Researchmentioning

confidence: 99%

“…Among the different capital stock definitions proposed in the literature, we choose to rely on the notion of productive capital, which allows us to introduce a decreasing rate of efficiency of surviving assets over time. The productive capital (expressed in terms of standard efficiency units) is a measure of capital services that different types of assets provide to the production process at a given moment in time, and is computed as: Where: ; I t ‐ i = gross investment flows between t − 1 and t ; S t = survival rate at t of past investment made between t − i − 1 and t − i ; and e i = efficiency of an i ‐period old asset, with a hyperbolic function (see Di Giacinto et al. 2010, for further details on the methodology utilized to compile the public capital stock figures).…”

Section: The Public Infrastructure Data Setmentioning

confidence: 99%

“…Where: K t g = productive public capital at the end of the period yea ( r r t) ; It-i = gross investment flows between t -1 and t; St = survival rate at t of past investment made between ti -1 and ti; and ei = efficiency of an i-period old asset, with a hyperbolic function (see Di Giacinto et al 2010, for further details on the methodology utilized to compile the public capital stock figures).…”

Section: The Public Infrastructure Data Setmentioning

confidence: 99%

“…From 1991 to 2000, the growth of public capital in the South was equal to zero (14.0 in the North West and 11.5 in the North East, 5.9 in the Centre); between 2001 and 2007, it was negative, and transport infrastructure strongly contributed to this result (Table 3). 5 3 In order to estimate this new longer investment series, we apply the dynamics of the regional investment in civil engineering works 1996-2007 as derived from Conti Pubblici Territoriali (CPT) database to the series provided by Di Giacinto et al (2010) for the period 1928-2001. Investment in transport infrastructures includes not only the Government expenditure, but also that of the extended public sector (i.e.…”

Section: The Public Infrastructure Data Setmentioning

confidence: 99%

“…3 3 In order to estimate this new longer investment series, we apply the dynamics of the regional investment in civil engineering works 1996–2007 as derived from Conti Pubblici Territoriali (CPT) database to the series provided by Di Giacinto et al. (2010) for the period 1928–2001.…”

mentioning

confidence: 99%

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Network effects of public transport infrastructure: Evidence on Italian regions

Giacinto¹,

Micucci²,

Montanaro³

2012

Papers in Regional Science

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In this paper we contribute to the empirical literature on the size of network effects of public infrastructures. A novel approach is introduced to this purpose. Moving from estimates of the common dynamics shared by the regional public capital stock series, identification of co‐ordinated policy shocks is obtained within a properly specified structural vector error correction model. Our empirical findings confirm previous evidence that transport infrastructures exert positive effects in the long run. At the same time, we find evidence that this influence is mostly attributable to the impact of co‐ordinated public policy shocks, as predicted by the literature on network externalities. Resumen En este artículo contribuimos a la literatura empírica sobre el tamaño de los efectos de red de infraestructuras públicas. Para este propósito se presenta un enfoque novedoso. A partir de estimaciones de las dinámicas comunes compartidas por series de reservas de capital público regional, la identificación de perturbaciones políticas se realiza dentro de un modelo de corrección del error vectorial estructural debidamente especificado. Nuestros descubrimientos empíricos confirman indicios anteriores de que las infraestructuras de transporte ejercen efectos positivos a largo plazo. A la vez, hallamos pruebas de que esta influencia es atribuible principalmente al impacto de perturbaciones en las políticas públicas coordinadas, tal y como predice la literatura sobre externalidades de red.

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Section: Related Literature and Motivations For The Researchmentioning

confidence: 99%