Quality of Public Investment.
Title:
Quality of Public Investment.
Author:
Chakraborty, Shankha.
ISBN:
9781451917291
Personal Author:
Physical Description:
1 online resource (25 pages)
Series:
IMF Working Papers
Contents:
Contents -- I. Introduction -- Figure 1. Infrastructure Quality vs. Control of Corruption -- II. The Environment -- III. General Equilibrium -- IV. Discussion -- A. Micro versus Macro Evidence -- Table 1. Effective Output Elasticity of Public Capital -- B. Accounting for Income Gaps -- Table 2. Ratio of Quality-adjusted Public Capital -- Table 3. Steady-State Predictions for Output Gaps -- V. Conclusion -- Figure 2. Multiple Equilibria in Corruption -- References.
Abstract:
This paper develops a growth model with specialized goods where inefficient and corrupt bureaucracies interact with the provision of public investment services in affecting the productivity of private capital, specialization, and growth. The model provides potential explanations for the contradictory empirical results on the effects of public investment found in the literature as well as for the role of the quality of public infrastructure investment in creating a gap between rich and poor countries. From a policy perspective, the paper suggests that the link between public investment and growth depends critically on the quality and efficiency of public capital.
Local Note:
Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2017. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.
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