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Cost overruns in infrastructure projects: Evidence and implications

Author

Listed:
  • Alexandria EDWARDS

    (USA)

Abstract

In recent years, there has been a sharp growth in both the magnitude and frequency of major infrastructure investments worldwide. Despite this boom in infrastructure spending, major projects continue to systematically underperform, as demonstrated in numerous empirical studies. In this paper, the author will discuss the factors underlying this growth in public spending, evaluate the empirical evidence on project cost overruns, and discuss the broader macroeconomic implications of this phenomenon.

Suggested Citation

  • Alexandria EDWARDS, 2021. "Cost overruns in infrastructure projects: Evidence and implications," Journal of Economics Library, EconSciences Journals, vol. 8(1), pages 22-44, March.
    • Handle: RePEc:cvv:journ5:v:8:y:2021:i:1:p:22-44
    as

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    References listed on IDEAS

    as
    1. Ansar, Atif & Flyvbjerg, Bent & Budzier, Alexander & Lunn, Daniel, 2014. "Should we build more large dams? The actual costs of hydropower megaproject development," Energy Policy, Elsevier, vol. 69(C), pages 43-56.
    2. Atif Ansar & Bent Flyvbjerg & Alexander Budzier & Daniel Lunn, 2016. "Does infrastructure investment lead to economic growth or economic fragility? Evidence from China," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 32(3), pages 360-390.
    3. Cantarelli, C.C. & Flyvbjerg, B. & Buhl, S.L., 2012. "Geographical variation in project cost performance: the Netherlands versus worldwide," Journal of Transport Geography, Elsevier, vol. 24(C), pages 324-331.
    4. Bent Flyvbjerg, 2008. "Curbing Optimism Bias and Strategic Misrepresentation in Planning: Reference Class Forecasting in Practice," European Planning Studies, Taylor & Francis Journals, vol. 16(1), pages 3-21, January.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission

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