Effects of public investment in infraestructures on the spanish economy

  1. Rafael Flores de Frutos
  2. Mercedes Gracia Díez
  3. Teodosio Pérez Amaral
Documentos de Trabajo (ICAE)

ISSN: 2341-2356

Year of publication: 1994

Issue: 4

Pages: 1-25

Type: Working paper

More publications in: Documentos de Trabajo (ICAE)


The objetive of this paper is to evaluate the short and long term effects of public investment in infraestructure on aggregate output, labor and capital formation in the private sector. The problem is analyzed in a dynamic multivariate framework, which allows for explicit consideration of feedback among all the variables. This approach departs from the current literature, which relies on a single equation model to estimate production functions. The results suggest a positive long term effect of public investment on the private sector variables.