Marginal Productivity of Expanding Highway Capacity
This paper examines the contribution of highway capacity expansions towards regional economic development in the US. Using data for the forty-eight contiguous US states from 1984 to 2005, the dynamic production function estimates reveal that increases in overall highway capacity in states can have a positive, long-lasting effect on private sector output. However, both short-run and long-run output elasticities of highways are small. The data suggests further investments in highway infrastructure may not produce sizable economic returns. The estimates of the long-term productivity benefits of capacity expansion appear to be even smaller for lane-mile additions of lower functional road categories. © 2012 LSE and the University of Bath
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 46 (2012)
Issue (Month): 3 (September)
|Contact details of provider:|| Web page: http://www.bath.ac.uk/e-journals/jtep|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Baltagi, Badi H & Pinnoi, Nat, 1995. "Public Capital Stock and State Productivity Growth: Further Evidence from an Error Components Model," Empirical Economics, Springer, vol. 20(2), pages 351-359.
- Teresa Garcia-Milà & Therese J. McGuire & Robert H. Porter, 1993.
"The effect of public capital in state-level production functions reconsidered,"
Economics Working Papers
36, Department of Economics and Business, Universitat Pompeu Fabra.
- Garcia-Mila, Teresa & McGuire, Therese J & Porter, Robert H, 1996. "The Effect of Public Capital in State-Level Production Functions Reconsidered," The Review of Economics and Statistics, MIT Press, vol. 78(1), pages 177-180, February.
- Jeffrey P. Cohen & Catherine J. Morrison Paul, 2004. "Public Infrastructure Investment, Interstate Spatial Spillovers, and Manufacturing Costs," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 551-560, May.
- David Roodman, 2009.
"How to do xtabond2: An introduction to difference and system GMM in Stata,"
StataCorp LP, vol. 9(1), pages 86-136, March.
- David Roodman, 2006. "How to Do xtabond2: An Introduction to "Difference" and "System" GMM in Stata," Working Papers 103, Center for Global Development.
- David J. Forkenbrock & Norman S. J. Foster, 1996. "Highways and Business Location Decisions," Economic Development Quarterly, W.E. Upjohn Institute for Employment Research, vol. 10(3), pages 239-248, August.
- Zvi Griliches & Jacques Mairesse, 1995.
"Production Functions: The Search for Identification,"
NBER Working Papers
5067, National Bureau of Economic Research, Inc.
- Z, Griliches & Jacques Mairesse, 1997. "Production Functions : The Search for Identification," Working Papers 97-30, Centre de Recherche en Economie et Statistique.
- Zvi Griliches & Jacques Mairesse, 1995. "Production Functions: The Search for Identification," Harvard Institute of Economic Research Working Papers 1719, Harvard - Institute of Economic Research.
- Alicia H. Munnell, 1990.
"How does public infrastructure affect regional economic performance?,"
Conference Series ; [Proceedings],
Federal Reserve Bank of Boston, vol. 34, pages 69-112.
- Alicia H. Munnell & Leah M. Cook, 1990. "How does public infrastructure affect regional economic performance?," New England Economic Review, Federal Reserve Bank of Boston, issue Sep, pages 11-33.
- David Aschauer, 1988.
"Is public expenditure productive?,"
88-7, Federal Reserve Bank of Chicago.
- Carlino, Gerald A. & Voith, Richard, 1992.
"Accounting for differences in aggregate state productivity,"
Regional Science and Urban Economics,
Elsevier, vol. 22(4), pages 597-617, November.
- Gerald A. Carlino & Richard Voith, 1989. "Accounting for differences in aggregate state productivity," Working Papers 90-1, Federal Reserve Bank of Philadelphia.
- Alfredo Pereira & Jorge Andraz, 2004. "Public highway spending and state spillovers in the USA," Applied Economics Letters, Taylor & Francis Journals, vol. 11(12), pages 785-788.
- Evans, Paul & Karras, Georgios, 1994. "Are Government Activities Productive? Evidence from a Panel of U.S. States," The Review of Economics and Statistics, MIT Press, vol. 76(1), pages 1-11, February.
- Joseph Berechman & Dilruba Ozmen & Kaan Ozbay, 2006. "Empirical analysis of transportation investment and economic development at state, county and municipality levels," Transportation, Springer, vol. 33(6), pages 537-551, November.
- Ciccone, Antonio & Hall, Robert E, 1996.
"Productivity and the Density of Economic Activity,"
American Economic Review,
American Economic Association, vol. 86(1), pages 54-70, March.
- Antonio Ciccone & Robert E. Hall, 1993. "Productivity and the Density of Economic Activity," NBER Working Papers 4313, National Bureau of Economic Research, Inc.
- Antonio Ciccone & Robert E. Hall, 1995. "Productivity and the density of economic activity," Economics Working Papers 120, Department of Economics and Business, Universitat Pompeu Fabra.
- Kenneth Button, 1998. "original: Infrastructure investment, endogenous growth and economic convergence," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 32(1), pages 145-162.
- Blundell, Richard & Bond, Stephen, 1998.
"Initial conditions and moment restrictions in dynamic panel data models,"
Journal of Econometrics,
Elsevier, vol. 87(1), pages 115-143, August.
- Blundell, R. & Bond, S., 1995. "Initial Conditions and Moment Restrictions in Dynamic Panel Data Models," Economics Papers 104, Economics Group, Nuffield College, University of Oxford.
- R Blundell & Steven Bond, "undated". "Initial conditions and moment restrictions in dynamic panel data model," Economics Papers W14&104., Economics Group, Nuffield College, University of Oxford.
- Richard Blundell & Steve Bond, 1995. "Initial conditions and moment restrictions in dynamic panel data models," IFS Working Papers W95/17, Institute for Fiscal Studies.
- Alicia H. Munnell, 1992. "Policy Watch: Infrastructure Investment and Economic Growth," Journal of Economic Perspectives, American Economic Association, vol. 6(4), pages 189-198, Fall.
- Rietveld, Piet, 1994. "Spatial economic impacts of transport infrastructure supply," Transportation Research Part A: Policy and Practice, Elsevier, vol. 28(4), pages 329-341, July.
- Garcia-Mila, Teresa & McGuire, Therese J., 1992. "The contribution of publicly provided inputs to states' economies," Regional Science and Urban Economics, Elsevier, vol. 22(2), pages 229-241, June.
- Serdar Yilmaz & Kingley E. Haynes & Mustafa Dinc, 2002. "Geographic and Network Neighbors: Spillover Effects of Telecommunications Infrastructure," Journal of Regional Science, Wiley Blackwell, vol. 42(2), pages 339-360.
- Douglas R. Dalenberg & Mark D. Partridge & Dan S. Rickman, 1998. "Public Infrastructure: Pork or Jobs Creator?," Public Finance Review, SAGE Publishing, vol. 26(1), pages 24-52, January.
- Holtz-Eakin, Douglas, 1994. "Public-Sector Capital and the Productivity Puzzle," The Review of Economics and Statistics, MIT Press, vol. 76(1), pages 12-21, February.
When requesting a correction, please mention this item's handle: RePEc:tpe:jtecpo:v:46:y:2012:i:3:p:333-347. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum)
If references are entirely missing, you can add them using this form.