PUBLIC INFRASTRUCTURE SPENDING AND PRIVATE INCOME GENERATION IN LARGE U.S. CITIES
The declining rate of infrastructure investment in the United States has been debated through a series of empirical studies. Some of the studies have found that public capital spending exerts a significant positive influence on national and subnational measures of private output, while others indicate that public capital exerts an insignificant effect. In this paper the authors examine the influence of local infrastructure spending on two measures of private production in large U.S. cities. The empirical analysis is derived from insights taken from endogenous growth theory and from criticism of earlier empirical studies. In this framework, spending on local public infrastructure is allowed to exert a nonlinear influence on output. It is found that most large U.S. cities, in the period 1962 to 1982, spent less on public infrastructure than a derived optimum that would have maximized private productivity growth in the following five-year period. Cities that do not fit this generalization are noted.
Lincoln Institute of Land Policy113 Brattle Street
Cambridge, MA United States 02138
- Durkin Jr, J T
- Wassmer, R W
- Publication Date: 1994
- Features: Figures; References; Tables;
- Pagination: 34 p.
- TRT Terms: Cities; Empirical methods; Governments; Impacts; Infrastructure; Investments; Local government; Output; Private enterprise; Productivity; Urban growth
- Geographic Terms: United States
- Subject Areas: Economics; Highways; Public Transportation; Society; I10: Economics and Administration;
- Accession Number: 00730242
- Record Type: Publication
- Files: TRIS
- Created Date: Dec 13 1997 12:00AM