Capital público y redistribución presupuestaria gubernamental
- Blázquez, Jorge
- Sebastián Gascón, Miguel
ISSN: 2341-2356
Any de publicació: 1994
Número: 17
Pàgines: 1-27
Tipus: Document de treball
Altres publicacions en: Documentos de Trabajo (ICAE)
Resum
The literature on public investment highlights the relationship between public capital and total output, estimating aggregate production functions. Such a procedure biases the positive effect of public capital by ignoring the financial constraint, and thus, the required resource reallocation, We consider both the production extemality and the government budget constraint. This allows us to solve for the optimal stock of public capital. We show that technological criteria may lead to an oversized public capital stock, and for a specific range of technological parameters, it occurs even when a crowding-m effeet takes place.