Can Public Investment Have a Positive Rate of Return?

1973 ◽  
Vol 81 (2, Part 1) ◽  
pp. 401-413 ◽  
Author(s):  
David L. Shapiro
Keyword(s):  
Public Investment ◽  
Rate Of Return ◽  
Positive Rate

Positive Interest Rate, Stationary Economy, and Inefficiency

2020 ◽  
pp. 1-17
Author(s):  
Amir Kia
Keyword(s):  
Interest Rate ◽  
Transition Period ◽  
Pareto Efficiency ◽  
Rate Of Return ◽  
Price Ratio ◽  
Marginal Rate ◽  
Positive Rate ◽  
Short Run ◽  
Pareto Efficient ◽  
The Interest Rate

This chapter analyses the direct impact of a positive rate of interest (usury) on the production possibility curve. Usury under a stationary state creates inefficiency in the sense that the marginal rate of transformation is not equal to the price ratio. Over the short run Pareto efficiency appears when a transition period is considered and the rate of return moving from one state to another is endogenous and equals the rate of investment. In a non-stationary economy, when a positive rate of return (interest) is equal to the growth rate of the economy, there will be a Pareto-efficient equilibrium. But if the interest rate is exogenous to the system, usury exists, and then Pareto efficiency cannot be achieved under any state, either stationary or non-stationary.

scholarly journals The Returns to Investment in Agricultural Research in Finland 1950—1984

1987 ◽  
Vol 59 (4) ◽  
pp. 251-354
Author(s):  
John Sumelius
Keyword(s):  
Linear Models ◽  
Agricultural Research ◽  
Function Analysis ◽  
Public Investment ◽  
Rate Of Return ◽  
Public Expenditures ◽  
Marginal Product ◽  
Public Research ◽  
Internal Rate Of Return ◽  
Internal Rate

This study attempts to estimate the value marginal product and the marginal internal rate of return for agricultural research in Finland. Based on production function analysis, different Cobb-Douglas and linear models are specified and estimated. A variable for the research input is measured through the flow of public expenditures for research and university-level education in 1950—1984. In addition, a stock of research capital consisting of funds accumulated since 1920 is constructed and included in the models. The estimates of elasticity with respect to public research are used to compute rates of return. State expenditures for extension agencies are also taken into account on the cost side. It is concluded that the stock of research capital estimates are more believable than the flow estimates, because of difficulties in identifying an appropriate lag. Based on the stock estimates, the value marginal product for public research during the period studied seems to have been 1.83—1.91. The conclusion implies that additional public investment in agricultural research would have annually returned by 183—191 % over the inflation rate. The marginal internal rate of return for public research is calculated to have been 20—62 % depending on the length of the lag (4—10 years).

Public Investment, The Rate of Return, and Optimal Fiscal Policy

Econometrica ◽  
1972 ◽  
Vol 40 (6) ◽  
pp. 1174
Author(s):  
Earl A. Thompson ◽  
Kenneth J. Arrow ◽  
Mordecai Kurz
Keyword(s):  
Fiscal Policy ◽  
Public Investment ◽  
Rate Of Return ◽  
Optimal Fiscal Policy

scholarly journals Growth and infrastructure investment in India: Achievements, challenges, and opportunities

2013 ◽  
Vol 58 (196) ◽  
pp. 51-70 ◽  
Author(s):  
Aswini Mishra ◽  
Kunapareddy Narendra ◽  
Bibhu Kar
Keyword(s):  
Economic Growth ◽  
Resource Constraints ◽  
Public Investment ◽  
High Rate ◽  
Rate Of Return ◽  
Infrastructure Investment ◽  
Gdp Growth ◽  
Private Partnership ◽  
Challenges And Opportunities ◽  
Very High

The paper analyses the recent scenario of infrastructure investment in India, with the recognition that inadequate infrastructure is one of the major constraints on India?s ability to sustain high GDP growth. It conducts an overview of the trends in infrastructure investment from the 10th Five Year Plan onwards, and tries to examine the linkage between infrastructure and economic growth. The results exhibit a very high rate of return and also highlight that, since resource constraints will continue to limit public investment in infrastructure in other areas, Public Private Partnership (PPP) project-based development needs to be encouraged wherever feasible.

Public Investment, The Rate of Return, and Optimal Fiscal Policy.

1971 ◽  
Vol 26 (4) ◽  
pp. 1005 ◽  
Author(s):  
Karl Shell ◽  
Kenneth J. Arrow ◽  
Mordecai Kurz
Keyword(s):  
Fiscal Policy ◽  
Public Investment ◽  
Rate Of Return ◽  
Optimal Fiscal Policy

Public Investment, the Rate of Return, and Optimal Fiscal Policy.

Economica ◽  
1971 ◽  
Vol 38 (151) ◽  
pp. 328
Author(s):  
Stephen Nickell ◽  
Kenneth J. Arrow ◽  
Mordecai Kurz
Keyword(s):  
Fiscal Policy ◽  
Public Investment ◽  
Rate Of Return ◽  
Optimal Fiscal Policy
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