Public Capital

This paper examines how the taxation (tax revenue) affects the economic growth in Morocco relying to the endogenous growth model of Barro (1990). After recalculating a new series of public capital and private capital and based on simultaneous equations model, one production function type Cobb Douglas with 3 factors (public capital, private capital and employment) has been estimated with data covering the period 1980-2015. The idea is to measure the effect of taxation on economic growth through its impact on public capital. The results find that the relationship between the two variables is positive. The householders can finance the public capital by taxes. And the public capital improves the economic growth. Résumé L'objectif du présent article est d'analyser le rôle de la fiscalité dans la croissance économique du Maroc en s'appuyant sur le modèle de croissance endogène de Barro (1990). Après avoir construit des séries de capital public et de capital privé et en se basant sur un modèle à équations simultanées, une fonction de production, de type Cobb Douglas à trois facteurs (capital public, capital privé et emploi), a été estimée sur la période 1980-2015. L'idée consiste à mesurer l'effet de la fiscalité sur la croissance économique, à travers son impact sur le capital public. Les résultats obtenus vont dans le sens d'une relation croissante entre la fiscalité et la croissance économique

Infrastructure affects rural development through many channels, such as improved agricultural productivity, increased rural nonfarm employment, and rural migration into urban sectors. However, the role of infrastructure has not been paid enough attention in the literature due to lack of reliable data on various infrastructure indicators. By using newly available detailed data on rural infrastructure from the Agricultural Census and other official sources, this paper uses a traditional source accounting approach to identify the specific role of rural infrastructure and other public capital in explaining productivity difference among regions, throwing new lights on how to allocate limited public resources for both growth and regional equity purposes.

Penelitian ini telah melakukan analisis terhadap pengaruh belanja modal pemerintah pusat dan produk domestik bruto dari tahun 2005 s.d. 2011 menggunakan analisis regresi linear sederhana. Data belanja modal pemerintah pusat diperoleh dari laporan keuangan pemerintah pusat yang diterbitkan oleh Kementerian Keuangan Pemerintah Republik Indonesia dan data produk domestik bruto diperoleh dari berita statistik yang dikeluarkan oleh Badan Pusat Statstik. Data ini telah lulus uji asumsi klasik normalitas, heteroskedastisitas, otokorelasi dan linearitas. Uji asumsi klasik multikolinearitas tidak dilakukan karena penelitian ini hanya memiliki satu variabel bebas. Maka, model persamaan regresi linear yang disusun telah memenuhi kriteria BLUE (Best Linear Unbiased Estimator) sehingga analisis regresi linear sederhana dapat dilakukan.
Dari analisis hubungan antara dua variabel menggunakan metode regresi linear sederhana, diperoleh simpulan sebagai berikut:
1. Hasil uji F menunjukkan bahwa belanja modal pemerintah pusat memiliki pengaruh terhadap produk domestik bruto.
2. Hasil uji t menunjukkan bahwa belanja modal pemerintah pusat mempengaruhi produk domestik bruto secara signifikan.
3. R2 menunjukkan 90,4% variasi pada produk domestik bruto dapat dijelaskan oleh variasi pada belanja modal pemerintah pusat.
4. Tiap 1 triliun rupiah belanja modal pemerintah pusat dapat mendorong pertumbuhan produk domestik bruto sebesar 9,271 triliun rupiah. Ini juga menunjukkan bahwa belanja modal pemerintah pusat memberikan pengaruh positif terhadap produk domestik bruto.

In this paper, public investment provision takes place in a stochastic environ-nement. The role of the government is to remove a part of the uncertainty faced by the firm. If the government simply maximizes the value of the firm, then the opti-mal tax is smaller under imperfect ...

Local Authorities are increasing faced with the problem of how to improve the sustainability of existing social housing stock, whilst providing additional units to meet increasing demand. The Private Finance Initiative (PFI) has been used as a means to deliver new and refurbished social housing using private, rather than public capital; however there have been concerns about the use of the PFI model to deliver sustainable infrastructure. This paper reports on the contextual factors that act as stimulants or impediments to ...

Modelling infrastructure as an international public good in a two-country model of trade where each country’s social planner behaves strategically, we show that the equilibrium levels of infrastructure are sub-optimal from a global perspective. Utilising an appropriate econometric framework and data from 16 European countries over the period 1987-95, we find evidence that accords well with the main predictions of

Since 1934, Norway has made extensive use of toll financing of road infrastructure. Private toll companies have been established as limited liability companies, with the aim to raise funds for road construction. Their position is exclusively limited to funding, because the National Public Roads Directorate (NPRD) is responsible for planning of road investments and operations. NPRD also acts as a principal when it comes to regulation of the private toll companies. The Norwegian Parliament makes the final investment decisions. The construction and maintenance activities are mainly contracted to private enterprises. Public Private Partnerships (PPP) are not common in Norway, but three pilot projects are implemented. It remains to bee seen whether PPP will gain further ground. Hence, the Norwegian toll road system has a mixture of urban cordon toll rings of various sizes, tolled fjord crossings, tolled motorways and is now assessing the experiences from tolled PPPs. In many projects, th...

The United Kingdom is committed to cutting greenhouse gas emissions by 80 percent by 2050 as part of a strategy to mitigate climate change. As housing is responsible for approximately 26 percent of all UK carbon emissions, housing carbon reduction is a key component in meeting this target. Local Authorities are faced with the problem of how to improve the quality of existing housing stock, provide additional social housing to meet increasing demand, and cutting emissions from both new and existing housing stock. The ...

This paper provides an empirical analysis of the role of public capital inflows in financial inclusion in Uganda. Financial inclusion was measured using three dimensions (access, usage and quality). Whereas public capital inflows where measured using three proxies of loans, grants and donations. The study anchored on financial intermediation theory. The target population was public organisations that have received public capital in Uganda. The study used data collected from Bank of Uganda and Ugandan investment Authority, Ministry of Finance for the period 2012-2016. A cross sectional descriptive designs were used while data was analyzed using descriptive statistics and multivariate Logistics regression analysis. It was found that public capital inflows did not play any role in promoting financial inclusion in Uganda. From the findings the study concluded that loans contributed 89% of public capital while grants contributed 11%. The study recommends that government particularly Bank of Uganda, Ministry of Finance and Uganda Investment Authority to formulate policies to ensure loans are reduced and parliament through its oversight role should ensure this happens. Further, grants and donations which are sustainable and stable sources of inflows should be deepened and widen by ensuring that adequate accountabilities for grants are done.

Economic growth and the several topics related to it have been studied by economists since their earliest publications. Two different approaches to this area can be found in Neoclassical and Endogenous growth models. The economic growth analysis has focused its attention on the factors that influence the growth of nations, such as fiscal policy or improvement of human capital. Nevertheless, it is also interesting to study the effects of income distribution on economic growth to determine if it has positive effects on growth. The aim of this paper is to study these effects. The authors will develop a theoretical model in which they will introduce public capital in a typical Cobb-Douglas production function. They will estimate OLS, GLS, and SUR fixed effects models for time series and cross-sectional data.

Tax structure, public capital and business cycle. The aim of this paper is to analize the potential effects that different tax and public invest- ment policies would have on the business cycle features. We set a general equilibrium model, calibrated with Spanish economy data, where public capital stock is an additional input. The use of different taxes to fulfill the

The economic literature recognises the importance of public capital -commonly associated to infrastructure- as an additional factor in the production process, along with labour and private capital. This paper presents a critical review of the latest research assessing the link between public capital and national income from different perspectives. It is shown that empirical studies have been relatively successful in evidencing the importance of public capital on economic activity. However, more research in this field is needed, as there are still important caveats to be looked into.

This paper focuses on the impact of the public sector capital on private sector productivity in Finland. The majority of previous contributions support the public capital hypothesis, i.e. that public capital plays an important role in enhancing private sector productivity. However, the contribution of Tatom (1991a) sheds new light on this issue. He shows that by correcting the previously used models of some of their most serious deficiencies, the impact of public capital is no longer significant for private sector productivity. We have applied Tatom’s approach to Finnish data, and our results are similar to his findings. However, our results concerning the precedence between public capital and private sector output provide some evidence of causation running from public capital to private sector output, i.e. our results indicate that, if correctly targeted, public capital investment could affect private sector performance.

This paper analyses the marginal allocative and welfare effects of various structural budget-deficits in a representative-agent model where the Ricardian equivalence Theorem does not hold because of distortionary taxation. In order to carry out this analysis we perform numerical examples based upon a parameterized “typical" European economy.

Public capital hypothesis explains that a positive relationship exists between private and public investment. This paper examines the validity of the hypothesis by using a panel time series analysis on four sectors of the Malaysian economy (agriculture, industry and ...