Econometric testing of spatial productivity spillovers from public capital

  1. Álvarez Pinilla, Antonio
  2. Orea Sánchez, Luis
  3. Arias Sampedro, Carlos
Journal:
Hacienda Pública Española / Review of Public Economics

ISSN: 0210-1173

Year of publication: 2006

Issue: 178

Pages: 9-22

Type: Article

More publications in: Hacienda Pública Española / Review of Public Economics

Abstract

In this paper we review two different approaches followed in the empirical literature to test for the existence of public capital spillovers. Additionally, we explore the role played by an additive aggregator of public capital in neighboring regions versus the multiplicative aggregator used previously in the literature. In the empirical application we compare the different methodologies using a panel data set of the 47 mainland Spanish provinces. We do not find evidence of the existence of spillover effects of public infrastructure.