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Thresholds Effects, Public Capital And The Growth Of The United States

Author

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  • José García-Montalvo

    (Instituto Valenciano de Investigaciones Económicas)

Abstract
El documento analiza la posibilidad de efectos umbral en el crecimiento asociados con la intensidad de capital público. Se estima un modelo de crecimiento de Solow aumentado con capital humano usando datos de los estados estadounidenses para el período 1969-86, rechazándose la existencia de un régimen único para todos los estados, cuando el capital público es utilizado para discriminar movimientos en la función de producción. La tasa de convergencia para los estados difiere dependiendo de su nivel inicial de capital público. Se discuten las implicaciones de la política económica de estos resultados. This paper analyzes the possibility of threshold effects in growth associated with the intensity of public capital. A Solow growth model augmented by human capital is estimated using US states data for the period 1969-86. The existence of a unique regime for all the states is strongly rejected by the data when public capital per capita is used to discriminate shifts in the production function. The rate of convergence for states differs depending on their initial level of public capital. The economic policy implications of these results are discussed .

Suggested Citation

  • José García-Montalvo, 1993. "Thresholds Effects, Public Capital And The Growth Of The United States," Working Papers. Serie EC 1993-11, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    • Handle: RePEc:ivi:wpasec:1993-11
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    References listed on IDEAS

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