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Estimates of optimal public capital stocks in Japan using a public investment discount rate framework

Conference paper
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Part of the Studies in Empirical Economics book series (STUDEMP)

Abstract

The purpose of this paper is to empirically assess the optimality of the level of public capital in Japan. We use a methodological approach based on Burgess’s (1988) procedure for calculating the public discount rate. This approach involves estimating a production function, but does not necessarily require utility function estimation. The results indicate that, although the Japanese economy experienced a public capital deficiency over the period 1960-1982, public capital moved toward optimal levels throughout the period.

Key words

Public discount rate optimal public capital Japanese economy 

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Copyright information

© Springer-Verlag Berlin Heidelberg 2000

Authors and Affiliations

  1. 1.School of EconomicsNagoya UniversityNagoyaJapan
  2. 2.Department of EconomicsChukyo UniversityNagoyaJapan
  3. 3.Department of EconomicsHosei UniversityTokyoJapan

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