Measuring the Contribution of Public Infrastructure Capital in Sweden

44 Pages Posted: 27 Apr 2000 Last revised: 3 Jul 2022

See all articles by Ernst R. Berndt

Ernst R. Berndt

Massachusetts Institute of Technology (MIT) - Sloan School of Management; National Bureau of Economic Research (NBER)

Bengt Hansson

Lund University

Date Written: September 1991

Abstract

Our purpose in this paper is to examine how one might evaluate and measure the contribution of public infrastructure capital on private sector output and productivity growth in Sweden. We do this by specifying and implementing empirically a number of alternative econometric models, using annual data for Sweden from 1960 to 1988. Using a dual cost function approach, we find that increases in public infrastructure capital, ceteris paribus, reduce private sector costs. We compute that amount of public infrastructure capital that would rationalize the cost savings incurred by the private business and manufacturing sectors, and find that the amount that can be rationalized in this manner is less than what was in fact available in 1988, but that the extent of excess public infrastructure capital has been falling in the 1980's.

Suggested Citation

Berndt, Ernst R. and Hansson, Bengt, Measuring the Contribution of Public Infrastructure Capital in Sweden (September 1991). NBER Working Paper No. w3842, Available at SSRN: https://ssrn.com/abstract=226728

Ernst R. Berndt (Contact Author)

Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )

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Bengt Hansson

Lund University ( email )

Department of Construction Management
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Sweden
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