The contribution of transport and human capital infrastructure to local private production: a partial adjustment approach

Arbeitspapier

This paper uses a partial adjustment approach to measure the contribution of public infrastructure to local private production. In the first step of the empirical analysis we apply a principal component analysis in order to construct 2 new infrastructure indicators from an array of 7 measures of transport and human capital infrastructure. In the second step the output of different sectors is regressed on private factor inputs and on these 2 infrastructure indicators. Our main finding is that expected long-run equilibrium output in an area of local government will be higher, the better it is endowed with both transport and human capital infrastructure. Moreover, transport and human capital infrastructure appear to be complementary, i.e. raising only transport infrastructure will not yield an increase in private production at the local level.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: WZB Discussion Paper ; No. FS IV 00-20

Classification and Topics

• Classification: Wirtschaft

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Stephan, Andreas
• Event: Veröffentlichung
• (who): Wissenschaftszentrum Berlin für Sozialforschung (WZB)
• (where): Berlin
• (when): 2000

Further information

• Handle: http://hdl.handle.net/10419/50986
• Last update: 10.03.2025, 11:43 AM CET