Sep 21, 2006

Articles in journals

St. Aubyn, M., Pina, A.

8

3

A new method of empirically computing the macroeconomic returns to public investment is proposed. Pereira’s (2000) technique is modified, and a measure which accounts for both public and private investment costs is suggested. An empirical application to US data shows that differences between alternative ways of measuring rates of return are non-trivial - taking into consideration the full investment effort halves estimated returns when partial publiccosts only are considered.

public investment,rate of return,VAR,