Please use this identifier to cite or link to this item: http://buratest.brunel.ac.uk/handle/2438/9104
Title: Public capital maintenance and congestion: Long-run growth and fiscal policies
Authors: Dioikitopoulos, EV
Kalyvitis, S
Keywords: Public capital maintenance;Congestion;Optimal fiscal policies
Issue Date: 2008
Publisher: Elsevier
Citation: Journal of Economic Dynamics and Control, 32(12), 3760 - 3779, 2008
Abstract: In this paper we study an endogenous growth model, in which public maintenance expenditures affect the depreciation rate of public capital and the latter is subject to congestion. We find that economies with low congestion in public infrastructure will require a threshold level of public capital maintenance for ongoing growth. We also examine the fiscal implications of public capital maintenance policies and we find that the composition of public capital expenditures under congestion is a crucial determinant of optimal and growth-maximizing fiscal policies. The government can affect the return of public capital by re-allocating public expenditures between ‘new’ public investment and maintenance and hence avoid excessive taxation that is required under increasing congestion.
Description: This is the post-print version of the final paper published in Journal of Economic Dynamics and Control. The published article is available from the link below. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. Copyright @ 2008 Elsevier B.V.
URI: http://www.sciencedirect.com/science/article/pii/S0165188908000584
http://bura.brunel.ac.uk/handle/2438/9104
DOI: http://dx.doi.org/10.1016/j.jedc.2008.04.001
ISSN: 0165-1889
Appears in Collections:Economics and Finance
Dept of Economics and Finance Research Papers

Files in This Item:
File Description SizeFormat 
Fulltext.pdf218.79 kBAdobe PDFView/Open


Items in BURA are protected by copyright, with all rights reserved, unless otherwise indicated.