THE INFLUENCE OF TRANSPORTATION INFRASTRUCTURE ON ECONOMIC DEVELOPMENT
This paper implements an improved methodology for estimating the effects of infrastructure spending on aggregate output and shows the results of previous studies to be biased and imprecise. Previous studies have found the elasticity of aggregate output with respect to infrastructure spending to be in the 0.3 to 0.6 range. Literally hundreds of newspaper articles have referenced these specific results in discussing the need for increased spending. Using a transfer function model which accounts for nonstationarity and serial correlation, we find the aggregate output elasticity of net nonmilitary public investment is about 0.03.
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Corporate Authors:
University of British Columbia, Vancouver
Faculty of Commerce and Business Administration
Vancouver, British Columbia Canada V6T 1Z2 -
Authors:
- Harmatuck, D J
- Publication Date: 1996-3
Language
- English
Media Info
- Features: References; Tables;
- Pagination: p. 63-76
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Serial:
- LOGISTICS AND TRANSPORTATION REVIEW
- Volume: 32
- Issue Number: 1
Subject/Index Terms
- TRT Terms: Aggregates; Economic development; Economics; Infrastructure; Transfer functions; Transportation
- Uncontrolled Terms: Aggregate analysis
- Subject Areas: Economics; Society; Transportation (General); I10: Economics and Administration;
Filing Info
- Accession Number: 00721170
- Record Type: Publication
- Files: TRIS, ATRI
- Created Date: Apr 30 1996 12:00AM