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Infrastructure investment across Spanish regions: determinants and calculation of an expenditure needs index

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Author Info

  • Antoni Castells

    ()
    (Universitat de Barcelona)

  • Daniel Montolio

    ()
    (Universitat de Barcelona)

  • Albert Solé

    ()
    (Universitat de Barcelona)

Abstract

This paper constructs an index of infrastructure needs for the Spanish regions (Comunidades Autónomas). Using theoretical models, we define and econometrically estimate equations on the determinants of public investment in infrastructures undertaken by the different levels of government (regional and central) for the period 1987-1996. The estimated parameters for the investment determinants allow us to calculate a needs index, which reveals (and quantifies): first, the existence of a trade-off between equity and efficiency for the different levels of government when deciding public investments in infrastructures, and second, the importance on including additional (to GDP and population) need variables to calculate a territorial distribution rule of public investment in infrastructures.

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Bibliographic Info

Article provided by IEF in its journal Hacienda Pública Española/Revista de Economía Pública.

Volume (Year): 178 (2006)
Issue (Month): 3 (September)
Pages: 23-54

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Handle: RePEc:hpe:journl:y:2006:v:178:i:3:p:23-54

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Related research

Keywords: Infrastructures; investment needs; public investment.;

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References

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  1. Douglas Holtz-Eakin & Harvey S. Rosen, 1989. "Municipal Construction Spending: An Empirical Examination," NBER Working Papers 2989, National Bureau of Economic Research, Inc.
  2. Aschauer, David Alan, 1989. "Is public expenditure productive?," Journal of Monetary Economics, Elsevier, vol. 23(2), pages 177-200, March.
  3. Joeé Emilio Boscá & Francisco Javier Escribá & María José Murgui, 2002. "The Effect of Public Infrastructure on the Private Productive Sector of Spanish Regions," Journal of Regional Science, Wiley Blackwell, vol. 42(2), pages 301-326.
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  5. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 277-97, April.
  6. Dahlberg, Matz & Johansson, Eva, 1999. "On the Vote Purchasing Behavior of Incumbent Governments," Working Paper Series 1999:24, Uppsala University, Department of Economics.
  7. Case, A, 1996. "Election Goals and Income Redistribution : Recent Evidence from Albania," Papers 177, Princeton, Woodrow Wilson School - Public and International Affairs.
  8. Moreno, Rosina & Lopez-Bazo, Enrique & Artis, Manuel, 2002. "Public infrastructure and the performance of manufacturing industries: short- and long-run effects," Regional Science and Urban Economics, Elsevier, vol. 32(1), pages 97-121, January.
  9. Douglas Holtz-Eakin & Harvey S. Rosen, 1993. "Municipal Construction Spending: An Empirical Examination," Economics and Politics, Wiley Blackwell, vol. 5(1), pages 61-84, 03.
  10. Pereira, Alfred M. & Roca-Sagales, Oriol, 2001. "Infrastructures and private sector performance in Spain," Journal of Policy Modeling, Elsevier, vol. 23(4), pages 371-384, May.
  11. Gramlich, Edward M, 1994. "Infrastructure Investment: A Review Essay," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1176-96, September.
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