PUBLIC CAPITAL AND THE DEMAND FOR PRIVATE INPUTS

• 成果类型: Article
• 署名作者: SEITZ, H
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/0047-2727(94)90064-7
• 发表日期: 1994
• 页码: 287-307

摘要

This paper investigates the impact the provision of public capital has on the demand for private inputs using a cost function with public capital included as a fixed unpaid factor of production. The productivity effects of public capital provision are recovered by using duality theory. The model is applied to a panel of 31 two-digit industries of the West German manufacturing industry. It is shown that private and public capital are complements, whereas a substitutive relation emerges for labour. The empirical evidence suggests that the provision of public capital has a stabilizing but steadily decreasing impact on private input demand.