This article reviews recent research emphasizing the potential importance of public capital (or infrastructure) to aggregate economic performance, and provides a survey of empirical estimates of the productivity of public capital and of the impact of public capital investment on economic growth.
KeywordsCobb–Douglas functions Endogenous growth Long-term economic growth Neoclassical growth theory Output elasticity of public capital Productivity growth Public capital Public finance Returns to public capital Total factor productivity
JEL ClassificationsH0 E21
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