Rates of return to public and private capital:: new estimates using nonlinear Euler equations

被引:5
作者
Boscá, JE [1 ]
Cutanda, A [1 ]
Escribá, J [1 ]
机构
[1] Univ Valencia, Dept Anal Econ, E-46022 Valencia, Spain
关键词
D O I
10.1080/0003684042000191129
中图分类号
F [经济];
学科分类号
02 ;
摘要
Results obtained by Otto and Voss show that public investment undertaken in Australia over recent decades satisfies conditions for intertemporal efficiency. This paper confirms this result, although lower output elasticities and rates of return to private and public capital are obtained. The reason for these results is that the earlier work is extended by estimating the parameter related to the elasticity of intertemporal substitution that was earlier restricted to a specific value. In fact, it is shown here that it is possible to obtain an economically reasonable (and statistically significant) estimate of this parameter by assuming that the stochastic discount factor for the representative firm is the same as for the representative consumer and equal to a gross real interest rate.
引用
收藏
页码:1225 / 1232
页数:8
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