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Infrastructure Spending as Fiscal Stimulus: Assessing the Evidence

Author

Listed:
  • Sylvain Leduc
  • Daniel Wilson

Abstract

Transportation spending often plays a prominent role in government efforts to stimulate the economy during downturns. Yet, despite the frequent use of transportation spending as a form of fiscal stimulus, there is little known about its short- or medium-run effectiveness. Does it translate quickly into higher employment and economic activity or does it impact the economy only slowly over time? This paper reviews the empirical findings in the literature for the United States and other developed economies and compares the effects of transportation spending to those of other types of government spending.

Suggested Citation

  • Sylvain Leduc & Daniel Wilson, 2014. "Infrastructure Spending as Fiscal Stimulus: Assessing the Evidence," Review of Economics and Institutions, Universit√† di Perugia, vol. 5(1).
  • Handle: RePEc:pia:review:v:5:y:2014:i:1:n:1
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    More about this item

    Keywords

    infrastructure; highways; fiscal policy; economic activity;

    JEL classification:

    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations
    • H4 - Public Economics - - Publicly Provided Goods

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