In most developing countries, irrigation, road, and power networks are not in good condition. In Latin America, for example, the effectiveness of such public infrastructure is only about 74 percent of that of industrialized countries in terms of forgone output. This paper develops a...

In most developing countries, irrigation, road, and power networks are not in good condition. In Latin America, for example, the effectiveness of such public infrastructure is only about 74% of that of industrialized countries. Low effectiveness imposes a cost on these countries in terms of...

This paper studies the effects of public infrastructure investment policies. A dynamic general equilibrium model where the effective stock of public infrastructure is an input in production is used to analyze the consequences of changing the share of GDP devoted to public investment....