Is public expenditure productive? Is there a shortfall or excess in public capital investment? We address these old issues in the light of new econometric tools. It is argued that the Cobb-Douglas specification that ignores nonlinearity inherent in the functional relationship of the production...

We used advances in data envelopment analysis (DEA) techniques to examine efficiency scores and investigate the issue of convergence and divergence in a cross-country analysis. Specifically, we used bootstrapping techniques to examine a data set of 52 developed and developing countries. We found...