01835cas a2200253 a 4500 AALejournalIMF001736 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451857993 1018-5941 BD-DhAAL BD-DhAAL Murphy, Russell. Private Costs and Public Infrastructure : The Mexican Case / Russell Murphy, Andrew Feltenstein. Washington, D.C. : International Monetary Fund, 2001. 1 online resource (35 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 One objective of government investment is to develop public infrastructure which may reduce private sector costs. In a developing economy, the scope for payoffs to investments of this sort may be particularly large. A major concern related to the recent fiscal adjustment in Mexico is that it has been carried out, in part, by depleting public infrastructure stocks.We estimate the effects of public infrastructure on private sector costs in Mexico and calculate the implied optimal infrastructure stocks. Our estimates indicate that previous results suggesting a large productive role of public infrastructure capital are not robust. There is little evidence that public infrastructure plays a large role in reducing private sector costs. Mode of access: Internet Feltenstein, Andrew. IMF Working Papers; Working Paper ; No. 2001/164 Full text available on IMF http://elibrary.imf.org/view/journals/001/2001/164/001.2001.issue-164-en.xml IMF e-Library