The productivity impact of public infrastructure is assessed by applying duality theory and estimating the savings in private production costs associated with the provision of public capital. The method used is that of a generalized cost function incorporating both physical and monetary measures...

The paper examines the productivity and supply of urban infrastructure capital using a panel data set of 85 West German cities. A simple theoretical framework is used to infer the impact of infrastructure services on private production cost. Assuming local firms to operate under perfect market...