Infrastructure investment across Spanish regions: determinants and calculation of an expenditure needs index
This paper constructs an index of infrastructure needs for the Spanish regions (Comunidades Autónomas). Using theoretical models, we define and econometrically estimate equations on the determinants of public investment in infrastructures undertaken by the different levels of government (regional and central) for the period 1987-1996. The estimated parameters for the investment determinants allow us to calculate a needs index, which reveals (and quantifies): first, the existence of a trade-off between equity and efficiency for the different levels of government when deciding public investments in infrastructures, and second, the importance on including additional (to GDP and population) need variables to calculate a territorial distribution rule of public investment in infrastructures.
Volume (Year): 178 (2006)
Issue (Month): 3 (September)
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