The Impact of Public Infrastructure on Canadian Multifactor Productivity Estimates - ARCHIVED
Articles and reports: 15-206-X2008021
Description:
This paper makes use of a growth accounting framework to examine the importance of public capital for private sector productivity growth. Most measures of multifactor productivity consider only the inputs of the business sector. This paper produces an alternate measure of multifactor productivity for the business sector that incorporates the impact of public capital. It uses the estimate of the elasticity of business sector output with respect to public capital derived from Macdonald (2008). Over the period, the conventional estimate of MFP growth averages 0.4% per year. About half of this growth is attributable to public capital.
Issue Number: 2008021
Main Product: The Canadian Productivity Review
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Analysis
- Articles and reports: Public Infrastructure in Canada: Where Do We Stand?
Reference
- Surveys and statistical programs – Documentation: Infrastructure Capital: What Is It? Where Is It? How Much of It Is There?
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