Cover IMF Working Papers
The Impact of Public Capital, Human Capital, and Knowledge on Aggregate Output
Author: Mr. Frederick L Joutz and Mr. Yasser Abdih
Series:
IMF Working Papers
Volume/Issue:
Volume 2008: Issue 218
Language:
English
Publication Date:
01 Sep 2008
DOI:
https://doi.org/10.5089/9781451870763.001
ISBN:
9781451870763
ISSN:
1018-5941
Pages:
48
Keywords:
WP; null hypothesis; capital stock; constant returns to scale
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (343.9 KB) Download Epub
This paper investigates the impact of public capital on private sector output by testing and estimating an aggregate production function for the U.S. economy over the postwar period augmented to include the stock of public capital as an additional factor input. We use patent applications to proxy for knowledge/technology stocks and adjust labor hours for changes in human capital or skill. Using Johansen's (1988 and 1991) multivariate cointegration analysis, we find a positive and significant long run effect of public capital, private capital, skilladjusted labor, and technology/ knowledge on private sector output. We find that public capital accounts for about half of the post-1973 productivity slowdown, but only plays a minor role in the partial recovery of labor productivity growth since the mid 1980s. The largest contribution to that (partial) recovery comes from the knowledge stock and human capital.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund