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Econometric Modelling of Infrastructure and Australia's Productivity

Econometric Modelling of Infrastructure and Australia's Productivity

Internal research memorandum

This memorandum by Sid Shanks and Paula Barnes was released in January 2008.

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Contents

Preliminaries
Preface and Abbreviations

1   Introduction and summary
1.1   Background
1.2   Objectives and scope of the paper
1.3   What the paper does and says
1.4   Conclusions

2   Links between infrastructure and growth
2.1  What is infrastructure?
2.2   How infrastructure affects productivity
2.3   Empirical literature

3   Infrastructure measurement and trends
3.1   Sectoral coverage and scope of the analysis
3.2   ABS treatment of infrastructure in MFP estimates
3.3   Construction of the infrastructure variables
3.4   Patterns in the infrastructure and productivity variables

4   Framework for quantitative analysis
4.1   Framework specification
4.2   Estimation issues and strategy

5   Results and interpretation
5.1   The context for the results
5.2   Empirical results and implications
5.3   Further work

A   Overview of empirical literature

B   Treatment of public infrastructure in ABS estimates of MFP

C   Calculation of capital services indexes

D   Control variables

E   The effect of infrastructure on market sector productivity

F   The effect of infrastructure on industry productivity

G   Unit root and break tests

H   Scale and capacity utilisation

I   Correlations between productivity and infrastructure

J   Estimation strategy

References