A model for Public Infrastructure Equalization in Transitional Economies
AbstractIn this paper, a simulation model is constructed that would enable policy-makers in transitional economies to estimate regionally disparate capital needs and direct capital expenditures to improve standards of public capital or services such as education and health. The model allows policy makers to achieve some degree of ‘equalisation in the regional distribution of publicly supplied capital to allow citizens greater equality of access to services, regardless of location. After developing an appropriate input database, the model is applied to South Africa. The results show that South Africa would need to commit about 2 percent of GDP to supplementary public capital expenditures if it is to make substantial inroads into attaining some form of public infrastructure equalisation over time.
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Bibliographic InfoPaper provided by International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University in its series International Center for Public Policy Working Paper Series, at AYSPS, GSU with number paper0414.
Length: 21 pages
Date of creation: 01 Nov 2004
Date of revision:
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Web page: http://aysps.gsu.edu/isp/index.html
transitional economies; capital expenditure; PIM; equalisation; infrastructure backlogs; public expenditure;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-05-07 (All new papers)
- NEP-CMP-2005-05-07 (Computational Economics)
- NEP-PBE-2005-05-07 (Public Economics)
- NEP-TRA-2005-05-07 (Transition Economics)
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