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Public Infrastructure: Pork or Jobs Creator?

Author

Listed:
  • Douglas R. Dalenberg

    (University of Montana)

  • Mark D. Partridge

    (St Cloud University)

  • Dan S. Rickman

    (Oklahoma State University)

Abstract

Past studies of the impact of public capital on state economic well-betng have often focused on estimates of productton functions, yet such an approach overlooks some important economic relationships. This article presents estimates designed to care fully measure the impact of public capital on state employment by using a model that incorporates infrastructure impacts from several different sources Controlling for differences in states' industrial structure, demand conditions, production costs, demographics, and noninfrastructure amenities and state fixed effects, the authors find that infrastructure is a significant variable in determining state employment. Moreover, surrounding state highway public capital apparently has positive spillover impacts. Finally, a simulation is conducted to examine whether a govern ment policy of raising taxes to fund an increase in public infrastructure increases employment.

Suggested Citation

  • Douglas R. Dalenberg & Mark D. Partridge & Dan S. Rickman, 1998. "Public Infrastructure: Pork or Jobs Creator?," Public Finance Review, , vol. 26(1), pages 24-52, January.
  • Handle: RePEc:sae:pubfin:v:26:y:1998:i:1:p:24-52
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    Citations

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    Cited by:

    1. Valter Di Giacinto & Giacinto Micucci & Pasqualino Montanaro, 2012. "Network effects of public transport infrastructure: Evidence on Italian regions," Papers in Regional Science, Wiley Blackwell, vol. 91(3), pages 515-541, August.
    2. Saeid Mahdavi & Emmanuel Alanis, 2013. "Public expenditures and the unemployment rate in the American states: panel evidence," Applied Economics, Taylor & Francis Journals, vol. 45(20), pages 2926-2937, July.
    3. Piyapong Jiwattanakulpaisarn & Robert Noland & Daniel Graham & John Polak, 2006. "Highway Infrastructure Investment and Regional Employment Growth: Dynamic Panel Regression Analysis," ERSA conference papers ersa06p207, European Regional Science Association.
    4. Hakan Yilmazkuday, 2017. "Individual tax rates and regional tax revenues: a cross-state analysis," Regional Studies, Taylor & Francis Journals, vol. 51(5), pages 701-711, May.
    5. Hernández, Aday & Jiménez, Juan Luis, 2014. "Does high-speed rail generate spillovers on local budgets?," Transport Policy, Elsevier, vol. 35(C), pages 211-219.
    6. DelRossi, Alison F. & Inman, Robert P., 1999. "Changing the price of pork: the impact of local cost sharing on legislators' demands for distributive public goods," Journal of Public Economics, Elsevier, vol. 71(2), pages 247-273, February.
    7. Piyapong Jiwattanakulpaisarn & Robert B. Noland & Daniel J. Graham & John W. Polak, 2009. "Highway infrastructure and state-level employment: A causal spatial analysis," Papers in Regional Science, Wiley Blackwell, vol. 88(1), pages 133-159, March.
    8. Mark Partridge & Dan Rickman, 2010. "Computable General Equilibrium (CGE) Modelling for Regional Economic Development Analysis," Regional Studies, Taylor & Francis Journals, vol. 44(10), pages 1311-1328.
    9. Michael L. Lahr & Rodrigo Duran & Anupa Varughese, 2004. "Estimating the Impact of Highways on Average Travel Velocities and Market Size," Urban/Regional 0403009, EconWPA.
    10. Sun-Kwan Lee & Euijune Kim, 2015. "The effects of highway investments on production costs in the Korean manufacturing sector," International Journal of Urban Sciences, Taylor & Francis Journals, vol. 19(2), pages 182-191, July.
    11. Chang K. Seung & David S. Kraybill, 2001. "The Effects of Infrastructure Investment: A Two-Sector Dynamic Computable General Equilibrium Analysis for Ohio," International Regional Science Review, , vol. 24(2), pages 261-281, April.
    12. Lori L. Taylor & Stephen P. A. Brown, 2006. "The Private Sector Impact Of State And Local Government: Has More Become Bad?," Contemporary Economic Policy, Western Economic Association International, vol. 24(4), pages 548-562, October.
    13. Jiwattanakulpaisarn, Piyapong & Noland, Robert B. & Graham, Daniel J., 2010. "Causal linkages between highways and sector-level employment," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(4), pages 265-280, May.
    14. Piyapong Jiwattanakulpaisarn & Robert B. Noland & Daniel J. Graham & John W. Polak, 2009. "Highway Infrastructure Investment And County Employment Growth: A Dynamic Panel Regression Analysis," Journal of Regional Science, Wiley Blackwell, vol. 49(2), pages 263-286.
    15. Piyapong Jiwattanakulpaisarn & Robert B. Noland & Daniel J. Graham, 2012. "Marginal Productivity of Expanding Highway Capacity," Journal of Transport Economics and Policy, University of Bath, vol. 46(3), pages 333-347, September.
    16. Guineng Chen & Marcos Correia & João de Abreu e Silva, 2015. "Accessibility Indicators for Regional Economic Development: An Application to the Regional Distributive Effects of High-Speed Rail in Spain," ERSA conference papers ersa15p393, European Regional Science Association.
    17. Fabrizio Balassone & Daniele Franco, 2000. "Public investment, the Stability Pact and the ‘golden rule’," Fiscal Studies, Institute for Fiscal Studies, vol. 21(2), pages 207-229, June.
    18. Solmaria Halleck Vega & J. Paul Elhorst, 2015. "The Slx Model," Journal of Regional Science, Wiley Blackwell, vol. 55(3), pages 339-363, June.
    19. Mark D. Partridge & Dan S. Rickman, 2012. "Integrating Regional Economic Development Analysis and Land Use Economics," Economics Working Paper Series 1203, Oklahoma State University, Department of Economics and Legal Studies in Business.

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