A Capital Grant Scheme for Public Infrastructure Backlogs
It is generally accepted among economists that better education and health leads to higher quality human capital, more economic growth and higher per capita incomes. As a consequence, there is a renewed effort in some developing economies to expand the provision of education and health services. Public infrastructure, such as schools and hospitals, is a key input to the production of these services. If developing economies are to raise the quality of their human capital they will need more public infrastructure and hence higher rates of public capital formation. This paper considers various allocative mechanisms for public capital grants based on efficiency and equity considerations.
Keywords: Public Sector Infrastructure, Efficiency, Equity
Prof. Garry MacDonald
Business School, Curtin University