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This paper investigates the impact of public capital on private sector output by testing and estimating an aggregate production function for the U.S. economy over the postwar period augmented to include the stock of public capital as an additional factor input. We use patent applications to proxy for knowledge/technology stocks and adjust labor hours for changes in human capital or skill. Using Johansen's (1988 and 1991) multivariate cointegration analysis, we find a positive and significant long run effect of public capital, private capital, skilladjusted labor, and technology/ knowledge on private sector output. We find that public capital accounts for about half of the post-1973 productivity slowdown, but only plays a minor role in the partial recovery of labor productivity growth since the mid 1980s. The largest contribution to that (partial) recovery comes from the knowledge stock and human capital.

Public investments --- Human capital --- Knowledge management --- Econometric models. --- Management of knowledge assets --- Human assets --- Human beings --- Human resources --- Government investments --- Investments, Public --- Economic value --- Management --- Information technology --- Intellectual capital --- Organizational learning --- Capital --- Labor supply --- Expenditures, Public --- Investments --- Capital budget --- Economic development projects --- Investment of public funds --- Finance --- Econometrics --- Investments: Stocks --- Labor --- Macroeconomics --- Production and Operations Management --- Labor Economics: General --- Pension Funds --- Non-bank Financial Institutions --- Financial Instruments --- Institutional Investors --- Time-Series Models --- Dynamic Quantile Regressions --- Dynamic Treatment Effect Models --- Diffusion Processes --- Human Capital --- Skills --- Occupational Choice --- Labor Productivity --- Macroeconomics: Production --- Labour --- income economics --- Investment & securities --- Econometrics & economic statistics --- Stocks --- Vector autoregression --- Productivity --- Labor economics --- Industrial productivity --- United States --- Income economics

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The knowledge production function is central to R&D-based growth models. This paper empirically investigates the knowledge production function and intertemporal spillover effects using cointegration techniques. Time-series evidence suggests there are two long-run cointegrating relationships. The first captures a long-run knowledge production function; the second captures a long-run positive relationship between TFP and the knowledge stock. The results indicate the presence of strong intertemporal knowledge spillovers and that the long-run impact of the knowledge stock on TFP is small. This evidence is interpreted in light of existing theoretical and empirical evidence on endogenous growth.

Electronic books. -- local. --- Endogenous growth (Economics). --- Industrial productivity. --- Production (Economic theory). --- Research, Industrial -- Econometric models. --- Econometrics --- Investments: Stocks --- Macroeconomics --- Production and Operations Management --- Production --- Cost --- Capital and Total Factor Productivity --- Capacity --- Pension Funds --- Non-bank Financial Institutions --- Financial Instruments --- Institutional Investors --- Time-Series Models --- Dynamic Quantile Regressions --- Dynamic Treatment Effect Models --- Diffusion Processes --- Macroeconomics: Production --- Externalities --- Investment & securities --- Econometrics & economic statistics --- Total factor productivity --- Stocks --- Vector autoregression --- Productivity --- Spillovers --- Industrial productivity --- International finance --- United States --- Endogenous growth (Economics) --- Research, Industrial --- Production (Economic theory) --- Econometric models.

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This Open Access Brief presents the KAPSARC Global Energy Macroeconometric Model (KGEMM). KGEMM is a policy analysis tool for examining the impacts of domestic policy measures and global economic and energy shocks on the Kingdom of Saudi Arabia. The model has eight blocks (real sector, fiscal, monetary, external sector, price, labor and wages, energy, population, and age cohorts) that interact with each other to represent the Kingdom’s macroeconomy and energy linkages. It captures New Keynesian demand-side features anchored to medium-run equilibrium and long-run aggregate supply. It applies a cointegration and equilibrium correction modeling (ECM) methodology to time series data to estimate the model’s behavioral equations in the framework of Autometrics, a general-to-specific econometric modeling strategy. Hence, the model combines ‘theory-driven’ approach with ‘data-driven’ approach. The Brief begins with an introduction to the theoretical framework of the model and the KGEMM methodology and then walks the reader through the structure of the model and its behavioral equations. The book closes with simulations showing the application of the model. Providing a detailed introduction to a cutting-edge, robust predictive model, this Brief will be of great use to researchers and policymakers interested in macroeconomics, energy economics, econometrics, and more specifically, the economy of Saudi Arabia.

Econometrics --- Macroeconomics --- Environmental economics --- Energy technology & engineering --- Saudi Arabia --- Macroeconometric model --- Equilibrium correction modeling --- Autometrics --- General-to-specific modeling strategy --- Energy price reform --- Saudi Vision 2030 --- Economic policy --- Econometric models. --- Economic conditions --- Econometric models