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On the economic effects of public infrastructure investment:A survey of the international evidence

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  • Alfredo Marvão Pereira

    () (Department of Economics, The College of William and Mary)

  • Jorge M. Andraz

    () (Faculdade de Economia, Universidade do Algarve)

Abstract

Purpose: To present a comprehensive discussion of the empirical research on the impact of public investment in infrastructure on economic performance in terms of the methodological approaches and respective conclusions. Design/methodology/approach: The paper includes an integrated discussion of the methodological developments that successively have led to the estimation of production functions, cost and profit functions and, more recently, vector autoregressive models. Findings: The paper reveals some important areas for future research and highlights the natural convergence of this literature with the macro literature on the effects of fiscal policies. Originality/value: This paper is an up-to-date survey of the most important literature on the effects of public investment on economic performance and therefore constitutes an essential starting reference for academic researchers and policy makers alike. Paper type: Literature review.

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Bibliographic Info

Paper provided by Department of Economics, College of William and Mary in its series Working Papers with number 108.

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Length: 33 pages
Date of creation: 23 Jan 2011
Date of revision:
Handle: RePEc:cwm:wpaper:108

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Keywords: public investment; infrastructure; economic performance; evidence for the US; regional evidence; industry-specific evidence; international evidence.;

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