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Infrastructure and regional economic performance: comment

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  • Robert Eisner
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    Abstract

    Widely disparate results have flowed from various attempts to analyze the impact of public investment in tangible infrastructure on measures of economic activity. The author takes the substantial body of data put together by Munnell and Cook for 48 states over the years 1970 to 1986 and uses the data in pooled time series regressions, in pooled cross sections, and finally in distributed-lag investment functions. ; The author’s results support Munnell’s finding that states that have more capital have greater output, even after taking into account both their amounts of labor (nonagricultural employment) and private capital. The author notes that serious questions remain, however, as to which is the cause and which is the effect.

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    File URL: http://www.bostonfed.org/economic/neer/neer1991/neer591d.pdf
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    Bibliographic Info

    Article provided by Federal Reserve Bank of Boston in its journal New England Economic Review.

    Volume (Year): (1991)
    Issue (Month): Sep ()
    Pages: 47-58

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    Handle: RePEc:fip:fedbne:y:1991:i:sep:p:47-58

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    Related research

    Keywords: Infrastructure (Economics) ; Regional economics;

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    1. William D. Nordhaus & James Tobin, 1971. "Is Growth Obsolete?," Cowles Foundation Discussion Papers, Cowles Foundation for Research in Economics, Yale University 319, Cowles Foundation for Research in Economics, Yale University.
      • William D. Nordhaus & James Tobin, 1973. "Is Growth Obsolete?," NBER Chapters, in: The Measurement of Economic and Social Performance, pages 509-564 National Bureau of Economic Research, Inc.
      • William D. Nordhaus & James Tobin, 1972. "Is Growth Obsolete?," NBER Chapters, in: Economic Research: Retrospect and Prospect Vol 5: Economic Growth, pages 1-80 National Bureau of Economic Research, Inc.
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