Can national infrastructure spending reduce local unemployment? Evidence from an Australian roads program
We examine the effect of a federally-funded local infrastructure spending program on local unemployment rates. To address the likely funding endogeneity problem, we exploit variation in spending due to pork-barreling, and find that higher government expenditure on roads substantially reduces local unemployment.
References listed on IDEAS
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- Levitt, Steven D & Poterba, James M, 1999.
"Congressional Distributive Politics and State Economic Performance,"
Springer, vol. 99(1-2), pages 185-216, April.
- Steven D. Levitt & James M. Poterba, 1994. "Congressional Distributive Politics and State Economic Performance," NBER Working Papers 4721, National Bureau of Economic Research, Inc.
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- Andrew Leigh, 2008. "Bringing home the bacon: an empirical analysis of the extent and effects of pork-barreling in Australian politics," Public Choice, Springer, vol. 137(1), pages 279-299, October.
- Andrew Leigh, 2008. "Bringing Home the Bacon: An empirical analysis of the extent and effects of pork-barreling in Australian politics," CEPR Discussion Papers 580, Centre for Economic Policy Research, Research School of Economics, Australian National University.
- Peter Kenyon, 1997. "Infrastructure Spending and Unemployment: Government Responsibility for Growth and Jobs," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 30(4), pages 421-432. Full references (including those not matched with items on IDEAS)