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|Title:||International Aspects of Public Infrastructure Investment.|
Demetriades, Panicos O.
Morgenroth, Edgar L.W.
|Publisher:||Dept. of Economics, University of Leicester.|
|Abstract:||Modelling infrastructure as an international public good in a two-country model of trade where each country’s social planner behaves strategically, we show that the equilibrium levels of infrastructure are sub-optimal from a global perspective. Utilising an appropriate econometric framework and data from 16 European countries over the period 1987-95, we find evidence that accords well with the main predictions of our theory. Thus, we are able to offer a plausible theoretical explanation why public capital may be undersupplied, as suggested by previous empirical literature.|
|Series/Report no.:||Papers in Economics|
|Appears in Collections:||Reports, Dept. of Economics|
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