Majandusteaduskonna teadusseminar "Productivity and (In)Adequacy of Public Capital" 7. novembril
- Koht: X-312
- Kontakt Liis Saks, firstname.lastname@example.org
Kolmapäeval, 7. novembril kell 16.00-17.00 toimub ruumis X-312 majandusteaduskonna teadusseminar "Productivity and (In)Adequacy of Public Capital".
Seminar toimub inglise keeles.
Alvar Kangur, IMF, will present his recent paper:
Productivity and (In)Adequacy of Public Capital
Abstract: With increasing public debt ratios in advanced countries the policy focus has shifted towards growth-maximizing levels of public spending, most notably public capital. To inform these policy discussions we update the public capital stock data for OECD countries, covering the period of (1950)1960-2011. We document the secular decline in the public investment and capital ratios in most of the OECD countries. Two-step panel VECM estimates show that long-run causality runs both from income to infrastructure and vice versa. Based on the test for the sign and direction of the long-run effects developed by Canning and Pedroni (2008) our results suggest that OECD countries on average have moved from oversupplying to growth-maximizing levels of to nearly under-supplying public capital, though the latter result is not statistically significant. Together with stylized facts these results suggest that investment ratios in an average OECD country have reached a lower-bound. Further, there is some weak evidence that Emerging Asia is undersupplying whereas Latin America oversupplying public capital.
Info: The presentation will be based on Gupta et al. (2011): “Efficiency-Adjusted Public Capital and Growth” (IMF Working Paper WP/11/217) and on a forthcoming paper “Are Advanced Economies Spending Too Little on Public Investment?”. The IMF working paper will be made available at the seminar.
The presentation will last approximately 45 minutes followed by 15 minutes of discussion, in total one hour. Everyone is welcome! Questions regarding the seminar can be addressed to Liis Saks, email@example.com.