An infrastructure-led growth model is constructed where the durability of public capital is endogenous and varies according to its usage and the level of maintenance expenditure. Policy changes in ...total expenditures and the maintenance share are shown to be important for the steady state and the dynamic behavior of the economy. The optimal (growth-maximizing) taxation burden which goes to both ‘new’ investment and maintenance expenditure is, in contrast to standard results from other growth models, larger than the elasticity of infrastructure in the production function. The optimal shares of maintenance expenditure and investment in ‘new’ capital, that ensure maximum utilization of public resources, are calculated.
•We propose a model with credit constraints, endogenous price elasticity and endogenous quality.•Credit constraints generate higher prices, higher quality, and less elastic demands.•Evidence from ...Greek firms supports the model's main theoretical predictions.
We propose a simple model with endogenous quality, additive non-homothetic preferences and credit constraints. A unique data set of Greek manufacturing firms with firm-level exports, credit scores and other financial variables supports the model’s main predictions. Specifically, we establish that less credit-constrained Greek exporters with higher credit scores face export demand curves with lower price elasticity, charge higher export prices, and export higher-quality products.
The paper revisits the empirical investment literature, which has established that aggregate business fixed investment is not found to be related linearly to marginal or average Tobin's q. The ...theoretical background is extended here by developing a supply-side model where the depreciation rate of private capital is determined endogenously. The firm can either invest in 'new' capital, which adds directly to the existing capital stock at the presence of convex adjustment costs, or extend the durability of installed capital through maintenance expenditure, which affects its depreciation rate. The model shows that Tobin's q is then a positively related sufficient statistic for both components of aggregate capital expenditures. This central implication is tested empirically using aggregate time-series survey data from Canada on 'new' investment and maintenance expenditures covering the period 1956-93. The estimated relationships produce significant and plausible parameter estimates for the structural parameters of the q model.
We estimate the effect of euro adoption on prices using data on Greek exporters spanning over the period 1999–2007. The overall impact of the euro on the prices of exports was negligible, but it ...masks significant heterogeneity across firms with different levels of pre-euro productivity. Our benchmark estimates indicate that the prices set by initially high-productivity firms rose on average by 8.9%. Our evidence further shows that these firms also raised their markups after euro adoption, whereas less efficient firms lowered their markups.
Innovation, patents and trade Chalioti, Evangelia; Drivas, Kyriakos; Kalyvitis, Sarantis ...
The Canadian journal of economics,
08/2020, Letnik:
53, Številka:
3
Journal Article
Recenzirano
Using microdata of firm exports and international patent activity, we find that Greek innovative exporters, identified by their patent filing activity, have substantially higher export revenues by ...selling higher quantities rather than charging higher prices. To account for this evidence, we set up a horizontally differentiated product model in which an innovative exporter competes for market share in a destination against many non-innovative rivals. We argue that as the competition among the exporters of the non-innovative product becomes more intense, the innovative firm exports more compared with its non-innovative rivals in more distant markets, a prediction that is empirically confirmed in the dataset for Greek innovative exporters.
Àl’aide de microdonnées d’entreprises relatives aux exportations et aux activités de brevetage international, nous montrons que les exportateurs grecs innovants, identifiés par leurs dépôts de brevets, réalisent des gains à l’exportation nettement supérieurs en misant davantage sur les volumes de vente que sur l’augmentation des prix. Pour expliquer cette situation, nous avons élaboré un modèle de différenciation horizontale de produits dans lequel les exportateurs novateurs sont en compétition avec de nombreux concurrents non innovants afin de gagner des parts de marché. Nous montrons qu’à mesure que la compétition s’intensifie entre les exportateurs de produits non innovants, l’entreprise innovante exporte davantage que ses concurrents vers les marchés plus éloignés; cette prédiction se vérifie de façon empirique grâce aux données relatives aux exportateurs grecs innovants.
Foreign aid flows have increased considerably during the last decades, targeting, apart from development objectives, goals related to democracy. In this paper we investigate whether aid has affected ...the political regime of recipient countries. To this end, we use annual data on Net Official Development Assistance covering 64 aid-recipients. Because of data limitations, we cover the 1967–2002 period. We find that aid flows decreased the likelihood of observing a democratic regime in a recipient country. This effect is sensitive to economic and social conditions. The negative relation between aid and democracy is moderated when aid flows are preceded by economic liberalization. Aid from the U.S. has a non-significant effect on the political regime of recipients.
► We investigate whether aid has affected the political regime of recipient countries. ► A panel of 64 aid-recipients over 1967–2002 is employed, because of data limitations. ► Aid decreases the probability of observing a democratic regime in a recipient country. ► This effect is sensitive to economic and social conditions. ► Economic liberalization moderates the negative political impact of aid.
This study seeks to assess the future demand for energy and the trajectory of carbon dioxide emissions level in Greece, taking into account the impact of the Community Support Framework (CSF) II on ...the development process and the penetration of natural gas, which is one of the major CSF II interventions, in the energy system.
This article assesses the productivity effects of infrastructure operation and maintenance (O&M) spending by state and local governments in the 48 contiguous U.S. states over the period 1978–2000. We ...explicitly account for transboundary spillovers of capital and O&M spending and follow a semiparametric methodology that allows us to estimate state‐specific output elasticities. We find strong evidence that in all 48 states the cross‐state spillover effects of O&M outlays on productivity exceed their within‐state impacts and are substantially higher than the spillover effects of capital expenditure. (JEL C14, E22, E62, H76, O11, O47, R11)
This paper develops and estimates a stochastic general equilibrium model with capital maintenance, which affects endogenously the depreciation rate of capital. The estimate of maintenance series is ...found to track survey-based measures for Canada quite closely and to generate the procyclical pattern of maintenance observed in the data. We use our model estimates to infer the time profile of equipment capital depreciation in Canadian and US manufacturing. The depreciation rate is estimated to be volatile and highly procyclical in both countries.
PDF
