Technological change and the decline of public investment

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  • dc.contributor.author Debortoli, Davide
  • dc.contributor.author Gomes, Pedro
  • dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
  • dc.date.accessioned 2020-05-25T09:26:55Z
  • dc.date.available 2020-05-25T09:26:55Z
  • dc.date.issued 2014-06-01
  • dc.date.modified 2020-05-25T09:26:12Z
  • dc.description.abstract Over the past 40 years public investment has declined in most developed countries. This paper argues that such pattern can be the consequence of investment-specific technological progress. Public investment, mostly on infrastructures, experienced a slower rate of innovation than private investment, composed primarily by equipment and software. Within a simple neoclassical growth model with a public sector, we show that such type of technological progress reduces the incentives to invest in public capital, and accounts for 80 percent of the observed decline. The implied co-movements of other fiscal instruments are also consistent with observed trends.
  • dc.format.mimetype application/pdf*
  • dc.identifier https://econ-papers.upf.edu/ca/paper.php?id=1685
  • dc.identifier.citation
  • dc.identifier.uri http://hdl.handle.net/10230/44720
  • dc.language.iso eng
  • dc.relation.ispartofseries Economics and Business Working Papers Series; 1685
  • dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
  • dc.rights.accessRights info:eu-repo/semantics/openAccess
  • dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
  • dc.subject.keyword public investment; investment-specific technological change; public capital; profit tax; labor tax
  • dc.subject.keyword Macroeconomics and International Economics
  • dc.title Technological change and the decline of public investment
  • dc.title.alternative
  • dc.type info:eu-repo/semantics/workingPaper