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Public Infrastructure and Wages: Public Capital's Role as a Productive Input and Household Amenity

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  • Douglas R. Dalenberg
  • Mark D. Partridge

Abstract

Production function studies typically conclude that public capital plays little role in enhancing productivity. However, others have found that infrastructure and employment growth are positively related. These apparently conflicting results can be reconciled if public capital serves as a household amenity that increases labor supply without dramatically increasing productivity. This study examines the impact of public capital on wages in order to assess whether productivity or amenity effects dominate. For the economy as a whole, the results suggest that highway's strongest role is as a household amenity, however, for the manufacturing sector, the productivity effect of highways appears to dominate.

Suggested Citation

  • Douglas R. Dalenberg & Mark D. Partridge, 1997. "Public Infrastructure and Wages: Public Capital's Role as a Productive Input and Household Amenity," Land Economics, University of Wisconsin Press, vol. 73(2), pages 268-284.
    • Handle: RePEc:uwp:landec:v:73:y:1997:i:2:p:268-284
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    Cited by:

    1. Fredriksson, Per G. & List, John A. & Millimet, Daniel L., 2004. "Chasing the smokestack: strategic policymaking with multiple instruments," Regional Science and Urban Economics, Elsevier, vol. 34(4), pages 387-410, July.
    2. Gustavo Ferro & Omar O. Chisari, 2010. "Tópicos de Economía de la Regulación de los Servicios Públicos," Working Papers hal-00473038, HAL.
    3. Stephan J Goetz & Mark D Partridge & Dan S Rickman & Shibalee Majumdar, 2011. "Sharing the Gains of Local Economic Growth: Race-to-the-Top versus Race-to-the-Bottom Economic Development," Environment and Planning C, , vol. 29(3), pages 428-456, June.
    4. Fangjun Wang & Lizhu Ma & Baojun Gao & Yang S Liu, 2024. "Does high-speed railway affect the cost behavior of tourism firms? Evidence from China," Tourism Economics, , vol. 30(1), pages 212-235, February.
    5. Riccardo Crescenzi & Marco Di Cataldo & Andrés Rodríguez-Pose, 2016. "Government Quality And The Economic Returns Of Transport Infrastructure Investment In European Regions," Journal of Regional Science, Wiley Blackwell, vol. 56(4), pages 555-582, September.
    6. Zhang, Min & Partridge, Mark & Song, Huasheng, 2018. "Amenities and Geography of Innovation: Evidence from Chinese Cities," MPRA Paper 83673, University Library of Munich, Germany.
    7. Reinhard A. Weisser, 2019. "The price of mobility," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 39(1), pages 25-64, February.
    8. Mark D. Partridge, 2010. "The duelling models: NEG vs amenity migration in explaining US engines of growth," Papers in Regional Science, Wiley Blackwell, vol. 89(3), pages 513-536, August.
    9. Mark Partridge & Dan Rickman, 2010. "Computable General Equilibrium (CGE) Modelling for Regional Economic Development Analysis," Regional Studies, Taylor & Francis Journals, vol. 44(10), pages 1311-1328.
    10. Peterson, Steven K. & Jessup, Eric L., 2008. "Evaluating the Relationship Between Transportation Infrastructure and Economic Activity: Evidence from Washington State," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 47(2).
    11. Melvin Ayogu, 0. "Infrastructure and Economic Development in Africa: A Review-super- †," Journal of African Economies, Centre for the Study of African Economies, vol. 16(suppl_1), pages -126.
    12. repec:rre:publsh:v:33:y:2003:i:2:p:184-205 is not listed on IDEAS
    13. Chandra, Amitabh & Thompson, Eric, 2000. "Does public infrastructure affect economic activity?: Evidence from the rural interstate highway system," Regional Science and Urban Economics, Elsevier, vol. 30(4), pages 457-490, July.
    14. Hakan Yilmazkuday, 2017. "Individual tax rates and regional tax revenues: a cross-state analysis," Regional Studies, Taylor & Francis Journals, vol. 51(5), pages 701-711, May.
    15. Min Zhang & Mark D. Partridge & Huasheng Song, 2020. "Amenities and the geography of innovation: evidence from Chinese cities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 65(1), pages 105-145, August.
    16. Zhang, Jing & Yan, Wei, 2022. "The Economic Impact of Public Capital: Evidence from Chinese Prefectures and Firms," Regional Science and Urban Economics, Elsevier, vol. 97(C).
    17. Timilsina,Govinda R. & Hochman,Gal & Song,Ze, 2020. "Infrastructure, Economic Growth, and Poverty : A Review," Policy Research Working Paper Series 9258, The World Bank.
    18. Guangqing Chi, 2012. "The Impacts of Transport Accessibility on Population Change across Rural, Suburban and Urban Areas: A Case Study of Wisconsin at Sub-county Levels," Urban Studies, Urban Studies Journal Limited, vol. 49(12), pages 2711-2731, September.
    19. Albouy, David & Farahani, Arash & Kim, Heejin, 2018. "Productivity and Quality-of-Life Benefits to Rural Infrastructure," Issue Reports 277657, Farm Foundation.
    20. Antoni Pestaria & Kamaludin & Husaini & Fadli, 2022. "The Mediating Role of Age Productivity on Human Resources Development, Health Infrastructure, and Proverty Level," International Review of Management and Marketing, Econjournals, vol. 12(1), pages 11-18.
    21. repec:rre:publsh:v:33:y:2003:i:1:p:17-39 is not listed on IDEAS
    22. Guangqing Chi & Jun Zhu, 2008. "Spatial Regression Models for Demographic Analysis," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 27(1), pages 17-42, February.
    23. Guangqing Chi & David Marcouiller, 2011. "Isolating the Effect of Natural Amenities on Population Change at the Local Level," Regional Studies, Taylor & Francis Journals, vol. 45(4), pages 491-505.
    24. Peterson, Steven K. & Jessup, Eric L., 2007. "Transportation Infrastructure And Economic Activity: Evidence Using Vector Autoregression, Error Correction And Directed Acyclic Graphs," 48th Annual Transportation Research Forum, Boston, Massachusetts, March 15-17, 2007 207917, Transportation Research Forum.

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