Rentabilidad social de la inversión pública española en infraestructuras
ABSTRACT This paper quantifies the welfare effects of the Spanish public investment in infrastructures. For that purpose, we use data on Spanish economy to calibrate a dynamic general equilibrium model with a representative agent, where public investment is financed by means of distortionary taxes. As is usual, the stock of public infrastructures has a positive effect on the total factor productivity. However, as main contribution of the paper, we assume that this effect depends on the effective endowment of infrastructures. In particular, we assume that there are diminishing returns to scale at the private level as a consequence of the existence of transport costs, which negatively depend on the stock of infrastructures per unit of output.