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The Review of Economics and Statistics Vol. 74 No. 1 1992

The Role of Public Capital in Production

Catherine Lynde; James Richmond

Abstract

The impact of the stock of public capital on costs of production in the private sector is examined using annual data over the period 1958-89. A translog cost function is estimated and public capital is found to be a significant input. The estimates indicate that public capital has positive marginal product and that private and public capital are complements in production, rather than substitutes.

DOI
10.2307/2109540
Volume
74
Issue
1
Pages
37
Sources
crossref openalex

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