Skip to Main Content

Is All Government Capital Productive?

By Mary G. Finn
Economic Quarterly
Fall 1993

Examination of total U.S. government capital suggests that only certain of its components, namely, government-owned but privately operated capital, government enterprise capital, and government highway capital, directly contribute to the production of U.S. private sector output. During 1950-1969, positive highway capital growth raised the average growth rate of private output from 1.7 percent to 2.2 percent. In contrast, in the productivity slowdown period, 1970-1989, negative highway capital growth reduced the average growth rate of private output from 1.4 percent to 1.3 percent.

Contact Icon Contact Us