Public Intangibles: The Public Sector and Economic Growth in the SNA

26 Pages Posted: 5 Dec 2017

See all articles by Carol A. Corrado

Carol A. Corrado

The Conference Board; Georgetown University - Center for Business and Public Policy

Jonathan Haskel

Imperial College Business School

Cecilia Jona‐Lasinio

National Institute of Statistics (Istat)

Date Written: December 2017

Abstract

This paper sets out a framework for analyzing the impact of public investments on industry‐level productivity and economic growth. The concept of capital in the public sector is broadened from that which is mostly tangible (e.g. physical infrastructure) to that which also includes intangibles and long‐lasting societal assets. For the analysis of public investments, we find that in addition to expanding the asset boundary, national accounts also need to: (a) impute a net return to government and other non‐market capital—or provide industry‐level data by institutional sector of origin, allowing researchers to do so; (b) include all public payments to industry in industry‐level gross operating surplus (i.e. all subsidies, production, and product, and the annuity value of investment grants); and (c) provide crosswalks for key components of government expenditure by function of government (e.g. public funds for extramural R&D or worker training) to kind‐of‐activity classifications used for industries.

Keywords: Economic growth, Intangible capital, National accounts, Non‐market sector, Public sector, Public goods

JEL Classification: O47, E22, E01, H4, H44, L33

Suggested Citation

Corrado, Carol A. and Haskel, Jonathan E. and Jona‐Lasinio, Cecilia, Public Intangibles: The Public Sector and Economic Growth in the SNA (December 2017). Review of Income and Wealth, Vol. 63, pp. S355-S380, 2017. Available at SSRN: https://ssrn.com/abstract=3079944 or http://dx.doi.org/10.1111/roiw.12325

Carol A. Corrado (Contact Author)

The Conference Board ( email )

845 Third Avenue
New York, NY 10022
United States
202-340-0252 (Phone)

Georgetown University - Center for Business and Public Policy ( email )

Washington, DC 20057
United States

HOME PAGE: http://cbpp.georgetown.edu

Jonathan E. Haskel

Imperial College Business School ( email )

South Kensington Campus
Exhibition Road
London SW7 2AZ, SW7 2AZ
United Kingdom

Cecilia Jona‐Lasinio

National Institute of Statistics (Istat)

Via Cesare Balbo 16
00184 Rome, 0185
Italy

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