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In this paper we present an endogenous growth model to analyze the growth maximizing allocation of public investment among N different types of public capital. Using this general model of public capital formation, we analyze the stability of the long-run equilibrium and we derive the growth-maximizing values of the shares of public investment allocated to the different types of public capital, as well as the growth-maximizing tax rate (amount of total public investment as a share of GDP). Then we proceed with an empirical investigation of the theoretical implication of the model that both the effects of the shares of public investment and the tax rate on the long-run growth rate are non-linear, following an inverse U-shaped pattern. Using data of public investment in infrastructure and military capital formation, we derive empirical estimations that confirm the theoretical implications of the model. ( JEL E62, H56, O40). [ABSTRACT FROM AUTHOR]

The article revisits the relationship between growth and public productive expenditures by investigating the growth impact of "new" public investment along with maintenance expenditures in public capital. We sketch out the importance of these components of public capital expenditures for growth and then use survey data from Canada to assess the impact of these variables on Canadian growth. We find evidence that the Canadian economy would benefit from a fall in total public capital expenditures and from a reallocation between new public investment and maintenance expenditures. We also identify the growth impact of the associated sectoral public capital expenditures. [ABSTRACT FROM AUTHOR]

In this paper, we investigate the determinants of research output by European economics departments. We use data from a survey we conducted on the various characteristics of these departments. We pay particular attention to spillovers from North America to Europe and measure these in terms of visiting arrangements between academic institutions across the Atlantic and formal training received by European faculty in North America. We find strong evidence that European economics departments with North-American links have higher research output. [Copyright &y& Elsevier]