Treating infrastructure inputs as quasi-fixed in the short run, a multi-equation econometric model of production-infrastructure (social overhead capital) interlinkages and adjustments is developed based on a flexible functional form. Adjustment dynamics are endogenized and costs of adjustments are explicitly incorporated. The model is estimated with regional and national data from India; results include optimal paths and speeds of adjustments for infrastructure inputs market inputs' own and cross-price elasticities and demand elasticities with respect to the level of output, infrastructure stocks and associated user costs; and production cost elasticities with respect to output and infrastructure stocks. © 1988.
CITATION STYLE
Elhance, A. P., & Lakshmanan, T. R. (1988). Infrastructure-production system dynamics in national and regional systems. An econometric study of the Indian economy. Regional Science and Urban Economics, 18(4), 511–531. https://doi.org/10.1016/0166-0462(88)90024-5
Mendeley helps you to discover research relevant for your work.