01858cas a2200253 a 4500 AALejournalIMF000219 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451842968 1018-5941 BD-DhAAL BD-DhAAL Feltenstein, Andrew. An Analysis of the Optimal Provision of Public Infrastructure : A Computational Model Using Mexican Data / Andrew Feltenstein, Jiming Ha. Washington, D.C. : International Monetary Fund, 1996. 1 online resource (22 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students An intertemporal general equilibrium model is used to examine infrastructure effects on the Mexican national income. Production functions are estimated for the major sectors of the economy in which sectoral output depends on inputs of capital and labor, as well as the stocks of the public infrastructure. The analysis indicates that despite high estimated output elasticities with respect to public infrastructure, increased expenditure on infrastructure has rapidly decreasing benefits. Some benefits could be achieved by modest increases in capital expenditures, although at the cost of significantly higher inflation and real interest rates. The increase in real interest rates causes these benefits to be greatly reduced. Mode of access: Internet Ha, Jiming. IMF Working Papers; Working Paper ; No. 1996/013 Full text available on IMF http://elibrary.imf.org/view/journals/001/1996/013/001.1996.issue-013-en.xml IMF e-Library