The effects of public infrastructure and R&D capital on the cost structure and performance of US manufacturing industries

M. I. Nadiri, T. P. Mamuneas

    Research output: Contribution to journalArticle

    Abstract

    In this paper we examine the effects of publicly financed infrastructure and R&D capitals on the cost structure and productivity performance of twelve two-digit US manufacturing industries. The results suggest that there are significant productive effects from these two types of capital. Their effects on the cost structure vary across industries. Not only is the cost function shifted downward in each industry, generating productivity inducement, but the factor demand in each industry is also affected by the two types of public capital suggesting bias effects. We also calculate the marginal benefits of the two types of public capital services in each industry and estimate the "social' rates of return to these capitals for the industries in our sample. -Authors

    Original languageEnglish (US)
    Pages (from-to)22-37
    Number of pages16
    JournalReview of Economics & Statistics
    Volume76
    Issue number1
    DOIs
    StatePublished - 1994

    ASJC Scopus subject areas

    • Social Sciences (miscellaneous)
    • Economics and Econometrics

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