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Is the impact of public investment neutral across the regional income distribution? Evidence from Mexico

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Author Info
Joan Costa Font
Eduardo Rodriguez Oreggia (Universitat de Barcelona)

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Abstract

This paper investigates the contribution of public investment to the reduction of regional inequalities, with a specific application to Mexico. We use quantile regressions to examine the impact of public investment on regional disparities according to the position of each region in the conditional distribution of regional income. Results confirm the hypothesis that regional inequalities can indeed be attributed to the regional distribution of public investment, where the observed pattern shows that public investment mainly helped to reduce regional inequalities between the richest regions.

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Publisher Info
Paper provided by Universitat de Barcelona. Espai de Recerca en Economia in its series Working Papers in Economics with number 113.

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Length: 29 pages
Date of creation: 2004
Date of revision:
Handle: RePEc:bar:bedcje:2004113

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Postal: Espai de Recerca en Economia, Facultat de Ciències Econòmiques. Tinent Coronel Valenzuela, Num 1-11 08034 Barcelona. Spain.
Web page: http://www.ere.ub.es
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Find related papers by JEL classification:
H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
C39 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Other
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes

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