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Economic (annual) data used in this study were obtained from official government sources such as the Instituto Nacional de Estadisticas (various issues), the Banco Central de Chile, Memoria Anual (various issues), and OECD, Economic Surveys: Chile. 7 Private and public investment data for Chile have been obtained from the International Finance Corporation, Trends in Private Investment in Developing Countries: Statistics for 1970-2000 [Table C1, 2001]. The relevant stock data was generated using a standard perpetual inventory model. In this study the initial stocks of private (public) and foreign capital were estimated by aggregating over five years of gross investment (1956-1960), assuming an estimate of the rate of depreciation of 5 percent. To ensure the robustness of the econometric results, other estimates of the rate of depreciation were used (10 percent), as well as different estimates of the initial capital stock (e.g., summing over 4 and 6 years), but the results were not altered significantly.