Rights statement: This is the author’s version of a work that was accepted for publication in Economic Modelling. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Economic Modelling, 75, 2018 DOI: 10.1016/j.econmod.2018.06.013
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Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
}
TY - JOUR
T1 - Revisiting the returns of public infrastructure in Mexico
T2 - a limited information local likelihood estimation
AU - Mamatzakis, E.
AU - Tsionas, M.
N1 - This is the author’s version of a work that was accepted for publication in Economic Modelling. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Economic Modelling, 75, 2018 DOI: 10.1016/j.econmod.2018.06.013
PY - 2018/11
Y1 - 2018/11
N2 - This paper revisits the issue of accurately decomposing productivity growth to the impact of public infrastructure at firm level for Mexican industry whether the underlying functional form is a profit or a cost function. Our framework decomposes productivity growth into different components, and in particular the contribution of public infrastructure. We also propose a novel limited information local likelihood (LILL) estimation method that adequately deals with the issue of the endogeneity and model misspecification. The reported evidence shows that public infrastructure enhances productivity growth through profit gains and cost savings in all ten two-digit Mexican industries, though some variability across time exists, notably in the nineties and the 2000s when a shortage of infrastructure is observed.
AB - This paper revisits the issue of accurately decomposing productivity growth to the impact of public infrastructure at firm level for Mexican industry whether the underlying functional form is a profit or a cost function. Our framework decomposes productivity growth into different components, and in particular the contribution of public infrastructure. We also propose a novel limited information local likelihood (LILL) estimation method that adequately deals with the issue of the endogeneity and model misspecification. The reported evidence shows that public infrastructure enhances productivity growth through profit gains and cost savings in all ten two-digit Mexican industries, though some variability across time exists, notably in the nineties and the 2000s when a shortage of infrastructure is observed.
KW - Productivity growth
KW - Public infrastructure
KW - Limited information maximum likelihood
U2 - 10.1016/j.econmod.2018.06.013
DO - 10.1016/j.econmod.2018.06.013
M3 - Journal article
VL - 75
SP - 132
EP - 141
JO - Economic Modelling
JF - Economic Modelling
SN - 0264-9993
ER -