How should we measure the return on public investment in a VAR?

• Author(s): Pina, Álvaro ; St. Aubyn, Miguel
• Date: 2005
• Persistent ID: http://hdl.handle.net/10400.5/2673
• Origin: Repositório da UTL
• Subject(s): public investment; rate of return; VAR
• Document Type: Other
• Language: English

Description

Pereira's (2000) method of computing the return on public investment in a VAR is extended. A new return measure which accounts for public and private costs is proposed. An application to US data shows non-trivial differences between alternative return rates.