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Effects of the capital stock of the autonomous regions on production and employment in the Spanish economy

9th National Competition for Economic Research Grants

Public economics

Senior Researcher : Carolina Cosculluela Martínez

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Research Centre or Institution : Universidad Rey Juan Carlos. Madrid.

Abstract

The objective of this work is to estimate the effects of the capital stock of each of Spain's Regional Governments on GDP and employment in the economy, disaggregated by types of capital, using the most recent available sample of stock capital data in a dynamic, multi-equational context. The aim is to estimate and compare the effects on investment in each of the 4 types of aggregated macro capital stock (and the 12 sub-aggregates) for different time horizons, and also to identify those investments in capital that most contribute to economic growth and generate most employment. The results obtained so far, using the new data broken down by region, are very diverse but there is a co-integration relationship between GDP, employment, growth rates and, in some regions, both complementary capital and the capital under study intervene in that relationship.

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