Public Capital Investment and Economic Growth in Forth Worth: The Implications for Public Budgeting and Infrastructure Management

There is a common assumption that local government investment in infrastructure stimulates private development. This article examines relationships in one southwestern city between public capital spending and city infrastructure assets and private economic activity as measured by building permit activity, permit values, and assessed property valuations. Two research questions are examined: (1) Is public investment in new capital associated with private capital formation? and (2) Is public investment associated with improvements in the property tax base? The findings hold implications for infrastructure planning, budgeting, and management. First, public and private capital spending patterns varied in tandem across several cycles, and tracking such cycles may help public managers predict short- and mid-term infrastructure needs. Second, utility capital spending is critically related to private capital formation, and may offer higher fiscal returns than other public infrastructure. Third, infrastructure capital had a strong significant effect on the assessed value of urban property, and will therefore influence the property tax base.     

Public capital stock and interstate variations in manufacturing efficiency

This study focuses on the role of public capital stock in contributing to interstate differences in productive efficiency in manufacturing. Our motivation is to assess the role of public capital as a source of persistent regional variations in efficiency, and thus determine if public infrastructure policies might reasonably be expected to alter the competitive environment of a state's manufacturing sector. We use a stochastic frontier production function model, explicitly incorporating infrastructure capital, to examine the relative performance of the aggregate manufacturing sector across states and over time. We calculate an index of productive efficiency and estimate the determinants of statewide variations in it. These results show that variations in per capita infrastructure stocks significantly affect manufacturing efficiency. Considering the behavior of public capital as both a direct and an indirect input furthers our understanding of the role of infrastructure and its implications for regional economic development policies.     

公共权力与私人资本的博弈:政商关系之历史与现实

社会现实告诉我们,公共权力与私有资本都必须受到制约。在人类历史上,政商关系先后经历了前资本主义社会权力神化、资本主义社会权力道德化和社会主义社会权力客观化三个阶段。其中,资本主义社会私有资本第一次真正实现了有效地制约公共权力,将其关进了私有资本的笼子里。我国现在处于社会主义初级阶段,应当依靠发展社会主义民主政治,在社会主义市场经济基础上,建立相配套的社会主义市场政治上层建筑来制约公共权力;在此基础上,必须用公共权力将私有资本关进科学制度的笼子里,不能放任私有资本从经济走向政治染指国家政权,要坚持国家公共权力对私有资本的驾驭。因此,推进政治体制改革以重塑强大的科学的公共权力优越和正确处理政商关系,是全面完善社会主义市场经济的相辅相成不可分割的两个重要方面,特别是保持一种强大的科学的公共权力优越是社会主义市场经济至关重要的支撑。     

The Capital Budget: History and Future Directions

While there is a substantial body of literature concerning capital programming and budgeting in the private sector, there is only a modest literature on this subject in the public sector. Government researchers and public administration scholars have, for about seventy-five years, recognized the value of budgeting for operating expenses and have tried to develop theoretical frameworks for the public budgeting process. However, very little of this attention has been devoted to capital budgeting. As Alan Steiss has stated," The theory of capital budgeting has not been set forth; rather the emphasis... has been on devising and improving the techniques of capital budgeting." Michael White has called capital budgeting an "elusive subject" that "lacks clear definitions, organized traditions of inquiry, conceptual boundaries, standard questions, and reliable data sets."     

The Political Economy of Growth: Democracy and Human Capital

Democracy is more than just another brake or booster for the economy. We argue that there are significant indirect effects of democracy on growth through public health and education. Where economists use life expectancy and education as proxies for human capital, we expect democracy will be an important determinant of the level of public services manifested in these indicators. In addition to whatever direct effect democracy may have on growth, we predict an important indirect effect through public policies that condition the level of human capital in different societies. We conduct statistical investigations into the direct and indirect effects of democracy on growth using a data set consisting of a 30-year panel of 128 countries. We find that democracy has no statistically significant direct effect on growth. Rather, we discover that the effect of democracy is largely indirect through increased life expectancy in poor countries and increased secondary education in non poor countries.     

Social Capital in Denmark: A Deviant Case?

If social capital is important for democratic governance, then it is important how social capital develops. In this article the development of social capital in Denmark is studied on four dimensions: civic norms, social trust, civic involvement and social networks. In contrast to Robert Putnam's findings for the US, no evidence is found of a general weakening of social capital in Denmark. The findings are surprising, because Denmark faces some of the same tendencies that according to Putnam lie behind the decline of social capital in the US. The last section therefore discusses various institutional aspects that may help explain the difference. It is argued that the welfare state facilitates the production of social capital, partly by supporting civil society infrastructure, partly by the very structure of its institutions.     

城市积水考问政府公共服务能力

城市积水处理是城市基础设施建设的一部分,也是政府公共服务的一部分,更是对政府提供公共服务的能力和水平的考问和检验,面对严竣的积水现状,我国政府唯有强化公共服务能力,完善公共服务体系,才是治理之道。     

The Contribution of Local Public Infrastructure to Private Productivity and its Political Economy: Evidence from a Panel of Large German Cities

This paper proposes a simultaneous-equation approach to theestimation of the contribution of infrastructure accumulationto private production. A political economy model for theallocation of public infrastructure investment grants isformulated. Our empirical findings, using a panel of largeGerman cities for the years 1980,1986, and 1988, suggest thatcities ruled by a council sharing the State (`Bundesland')government's current political affiliation were particularlysuccessful in attracting infrastructure investment grants.With regard to the contribution of infrastructure accumulationto growth, we find that public capital is a significant factorin private production. Moreover, at least for the samplestudied, we find that simultaneity between output and publiccapital is weak; thus, feedback effects from output toinfrastructure are negligible.     

Financing Arlington County, Virginia's Capital Programs: The Experience of the 1980s, The Outlook for the 1990s

County governments in the 1970s had few responsibilities beyond the courts and jail functions. Now, due to large suburban growth in the 1980s, county governments will find themselves immersed in capital financing issues. Arlington County, Virginia, is the setting of this article on the effects of major financings in the 1980s on a county government in the 1990s.     

Public Service Motivation,Organizational Social Capital,and Knowledge Sharing in the Korean Public Sector

This article investigates whether public service motivation (PSM) and organizational social capital predict knowledge sharing in the public sector. The hypothesized relationships in the proposed model are verified with the online survey data of 506 public employees in Korea. The test results show that the two dimensions of PSM (attraction to public service and commitment to public values) and the trust component of organizational social capital are both positively related to knowledge sharing in the Korean public sector, and that the associability component of organizational social capital is indirectly associated with knowledge sharing through its influence on PSM. The article discusses the ways that PSM and organizational social capital may contribute to overcome the social dilemma of knowledge sharing in public organizations. It also suggests that there is need for further research on the individual dimensions of the PSM construct.     

Exploring Social Capital: as Concept and Practice in Australian Public Health Policies and Programs

Over the past twenty years interest has grown in the concept of social capital in international and Australian public policy. We explore how social capital is understood as a concept and used in practice for guiding policy development and program delivery in South Australian public health programs. The empirical research compared policy makers’ and practitioners’ understandings of social capital and how theories about social capital and health inequality were translated into practice in three case study projects. It found that there are shifting discourses between social capital and related concepts, including community capacity building, and social inclusion/exclusion. Policy makers reported less use of the concept of social capital in favour of social inclusion/exclusion reflecting changing political and policy environments where terms come into favour and then go out of fashion. In this transition period the two terms are often used interchangeably although there are some conceptual points of difference.     

Social Capital and Endogenous Preferences

In this paper we analyze whether social capital can emerge endogenously from a process of preference evolution. We define social capital as preferences that promote voluntary cooperation in a one-shot Prisoner’s Dilemma game. We investigate how the endogenous preferences depend on the amount of information individuals have about each other’s preferences. When there is sufficiently much information, maximal social capital emerges. In general, the level of social capital varies positively with the amount of information. Our results may add to an understanding of the factors that determine a society’s ability to generate cooperative outcomes.     

Social Capital and Regional Economies in Britain

Is social capital a prerequisite for prosperity? This paper analyzes social capital and economic performance in the British regions. Like Italy, Britain has a north–south economic divide. Are these differences caused by unequal stocks of social capital? This paper provides limited support for the hypothesized relationship between some indicators of social capital (especially trust and civic associations) and economic performance. Economic associations, however, are negatively correlated. This highlights shortcomings in social capital theory in terms of transferring the concept to new settings, the mechanisms linking social capital to production and the translation of social capital into public policy.     

The Impacts of State Capital Management Programs on State Economic Performance

Although the normative literature advocates systematic capital management practices, empirical studies investigating the tangible benefits of these practices are rare. Based on previous findings that public investment affects economic growth, this study extends the model of government spending and economic growth to investigate the effect of systematic capital management programs on state economic performance. Using panel data from 1997 to 2004 and the Government Performance Project's data on state capital management practices, the empirical results indicate that highly systematic capital management programs positively alter the relationship between the state's capital spending levels and the state's economic growth rate.     

A distributional theory of government growth

This article presents a closed form solution for time-consistent taxation and public spending in a dynamic game between government and median voter. Extending Meltzer and Richard’s static analysis of government size the article offers a theory of growth of government. At low stages of economic development the median voter, identified as a relatively poor worker, prefers to have no or only small redistributive taxation in order to foster savings. Through this channel he expects improvements of his labor productivity and wage. At higher stages of development, however, when capital is relatively abundant and prospects of further labor productivity gains through capital accumulation are smaller, the incentive to tax and redistribute income rises. Yet, in line with previous work on growth and infrastructure spending the median voter prefers a constant share of productive public spending at all times. Hence, government growth is solely driven by an expanding welfare state.     

In Good Company: Why Social Capital Matters for Women during Disaster Recovery

Although social capital has made inroads into the public administration literature, little is known about the gender dimensions of social capital in the context of a disaster. This article examines what kind of benefits, if any, social capital offers for women who are affected by disasters. Studying this question is important because it would help public administrators overcome the unique vulnerabilities of women and strengthen their capabilities in preparing for, responding to, and recovering from disasters. This case study of the city of Gölcük, Turkey, suggests that social capital offers benefits for women affected by disasters because it is therapeutic in nature and helps women gain empowerment and avoid the stigma of public assistance. The article offers lessons on how public administrators could build social capital in disaster‐stricken communities by enabling face‐to‐face interaction, initiating leadership programs, and putting in place institutions and policies that are conducive to collective action.     

Selecting Capital Investment Projects for Local Governments

Faced with burgeoning infrastructure needs and circumscribed capital revenues, local governments must perforce set priorities among competing capital projects submitted by their operating agencies. This process involves value choices and political resolutions in addition to technical considerations. This article finds current priority-setting procedures in need of improvement and suggests a framework for local government assessment and selection of capital investment projects.     

Does tenure in office affect regional growth? The role of?public capital productivity

We study the impact of tenure in office on economic performance. We evaluate the relationships between tenure in office and GDP growth, public capital growth, and public capital productivity using data for Spanish regions during the period 1980?C1998. We find that tenure decreases the impact of public capital growth on GDP growth. Our results suggest that tenure affects GDP growth negatively through a decrease in public capital productivity.     

The Impact of Capital Spending on Municipal Operating Budgets

What is the impact of capital spending for buildings, equipment, and other facilities on future operating expenditures of municipal governments? Because capital spending decisions are made independent of operating decisions in many larger municipalities, managers make long-term capital commitments without fully understanding the repercussions for operations. This implies the need for research that examines more closely the linkages between these budget cycles. This article develops a theory of the relationship between capital and operating expenditures, then uses data from the fortyeight largest U.S. cities to estimate both the magnitude of capital's impact and the time it takes for operating budgets to adjust. The study finds that five of six commonly provided municipal services were affected to varying degrees by past years' capital expenditures. Especially notable is the finding that the operating budgets of labor-intensive services, such as police and fire protection, are most sensitive to capital spending. For public managers, the findings point to the need for closer coordination between the capital and operating budget cycles, especially in those cases where capital outlays have clear, unambiguous positive implications for future operations.     

Drinking from the Talent Pool: A Resource Endowment Theory of Human Capital and Agency Performance

This article advances a resource endowment theory of human capital and performance in government organizations. Building on research on human capital and firm location in business economics and task complexity in public management, the authors argue that an agency's ability to implement policy is determined both by its scale and by the human capital of the population from which it draws its employees. The authors cast labor as a factor of production in public agencies and argue that access to higher‐quality labor improves government effectiveness. The effect of human capital on performance is especially pronounced when agencies are charged with the implementation of technically complex tasks. The empirical subject is U.S. municipal water utilities’ compliance with the Safe Drinking Water Act. Comparing records of compliance with more and less complex regulatory requirements provides evidence consistent with the general model. The findings carry important implications for public management and policy design.