Optimal endowments of public capital

An empirical analysis for the Spanish regions

Bibliographic Data

ID10409623
AuthorsOscar Bajo‐Rubio (0000-0003-2728-312X, University of Castilla-La Mancha, corresponding author), Carmen Díaz Roldán (0000-0002-1932-6487, University of Castilla-La Mancha), Carmen Díaz‐Roldán
Year2005
Volume39
Issue3
Pages297-304
Publication date2005-05-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueRegional Studies (JOURNAL)
Journal identifiersISSN: 0034-3404 • E-ISSN: 1360-0591
PublisherRoutledge (PUBLISHER • GB)
DOI10.1080/00343400500086895
OpenAlexW2057119414
LanguageEN
Citations received2
References cited16

Bajo‐Rubio O. and Díaz‐Roldán C. (2005) Optimal endowments of public capital: an empirical analysis for the Spanish regions, Regional Studies 39 , 297–304. Regional infrastructure policies, through increased public investment, are widely used to promote the development of poorer regions in European countries. This paper tries to find some evidence on the optimality in the provision of government capital for the case of the Spanish regions, 1965–95. To this end, a simple optimality condition is derived from an optimization growth model, namely, that marginal products of private and public capital should be equal. In this way, assuming that private capital was optimally provided, the results suggest that government capital would be under‐provided in the more productive regions, unlike the less productive regions, where the opposite result would hold

Capital (architecture · Economic system · Economics · Geography · Government (linguistics · Investment (military · Microeconomics · Political science · Private capital · Production (economics · Public capital · Public economics · Public fund · Public investment · Economic Growth and Productivity · Fiscal Policy and Economic Growth · Local Government Finance and Decentralization

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