Infrastructure and productivity: a nonlinear approach

Citation
Vg. Duggal et al., Infrastructure and productivity: a nonlinear approach, J ECONOMET, 92(1), 1999, pp. 47-74
Citations number
29
Language
INGLESE
art.tipo
Article
Categorie Soggetti
Economics
Journal title
JOURNAL OF ECONOMETRICS
ISSN journal
0304-4076 → ACNP
Volume
92
Issue
1
Year of publication
1999
Pages
47 - 74
Database
ISI
SICI code
0304-4076(199909)92:1<47:IAPANA>2.0.ZU;2-#
Abstract
This paper incorporates infrastructure into the production function as part of the technological constraint rather than as a discretionary factor inpu t. Our theoretical model specifies a technological growth rate as a nonline ar function of infrastructure and a time trend, the latter capturing the ef fect of all other variables on the growth rate in technology. The time tren d and infrastructure are modeled so as to be interactive rather than additi ve. The functional form estimated allows for a 'S'-shaped production functi on which embodies not only the properties of a long-run production function but also those exhibited in the short run. (C) 1999 Elsevier Science S.A. All rights reserved. JEL classification. C5 econometric modeling; O4, econo mic growth and aggregate productivity.