TY - BOOK ID - 69246841 TI - On the Substitution of Private and Public Capital in Production AU - An, Zidong. AU - Kangur, Alvar. AU - Papageorgiou, Chris. PY - 2019 SN - 1513518577 151351959X 1513519565 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Investments: General KW - Investments: Stocks KW - Labor KW - Macroeconomics KW - Public Finance KW - Macroeconomic Analyses of Economic Development KW - Economic Development: Financial Markets KW - Saving and Capital Investment KW - Corporate Finance and Governance KW - Fiscal and Monetary Policy in Development KW - Pension Funds KW - Non-bank Financial Institutions KW - Financial Instruments KW - Institutional Investors KW - National Government Expenditures and Related Policies: Infrastructures KW - Other Public Investment and Capital Stock KW - Labor Economics: General KW - Investment KW - Capital KW - Intangible Capital KW - Capacity KW - Human Capital KW - Skills KW - Occupational Choice KW - Labor Productivity KW - Investment & securities KW - Labour KW - income economics KW - Public finance & taxation KW - Stocks KW - Public investment and public-private partnerships (PPP) KW - Private investment KW - Human capital KW - Financial institutions KW - Expenditure KW - National accounts KW - Public-private sector cooperation KW - Labor economics KW - Saving and investment KW - United States UR - https://www.unicat.be/uniCat?func=search&query=sysid:69246841 AB - Most macroeconomic models assume that aggregate output is generated by a specification for the production function with total physical capital as a key input. Implicitly this assumes that private and public capital stocks are perfect substitutes. In this paper we test this assumption by estimating a nested-CES production function whereas the two types of capital are considered separately along with labor as inputs. The estimation is based on our newly developed dataset on public and private capital stocks for 151 countries over a period of 1960-2014 consistent with Penn World Table version 9. We find evidence against perfect substitutability between public and private capital, especially for emerging and LIDCs, with the point estimate of the elasticity of substitution estimated closely around 3. ER -