Roads to prosperity? Assessing the link between public capital and productivity

Article Abstract:

The impact of public investment on industrial productivity in the US from 1953 to 1989 is investigated by focusing on roads, the largest component of public capital. It is found that vehicle-intensive industries benefitted disproportionately from road construction. Results also suggest that the aggregate correlation between public capital and productivity reflects causation from the former to the latter and that public investment accounts for much of the productivity slowdown after 1973.

Author: Fernald, John G.
Analysis, Roads

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Intermediate goods and business cycles: implications for productivity and welfare

Article Abstract:

An aggregate demand-driven model of business cycles was constructed to explain productivity cycles and to provide forecasts of welfare losses resulting from monetary nonneutrality. The important components of the model are input-output production structure, imperfect competition, countercyclical price increases and rigid prices. It was suggested that efficiency can be procyclical even if production is attained without shocks and externalities.

Author: Basu, Susanto
Research, Welfare economics

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Are technology improvements contractionary?

Article Abstract:

Technology improvement initially appears to have adverse effects owing to price rigidity even though it greatly decreases nonresidential investment and input utilization. Estimating sectoral production functions can help generate an aggregate technology index.

Author: Kimball, Miles S., Basu, Susanto, Fernald, John G.
United States, Forecasts, trends, outlooks, Forecasts and trends, Preview of coming year, Technological forecasting, Market trend/market analysis, Work, Capital, Future of computing, Labour, Labor

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Subjects list: Economic aspects, Industrial productivity, Models, Business cycles
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