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Network effects of public transport infrastructure: evidence on Italian regions

Author

Listed:
  • Valter Di Giacinto

    (Bank of Italy)

  • Giacinto Micucci

    (Bank of Italy)

  • Pasqualino Montanaro

    (Bank of Italy JEL classification: C32, E61, H54, R42, R53)

Abstract

This paper contributes to the empirical literature on the magnitude of the network effects of public infrastructures, introducing a novel approach. After estimating the dynamics common to time series for the regional public capital stock, coordinated policy shocks are identified within a properly specified structural VEC model. The findings confirm previous evidence that transport infrastructures exert positive macroeconomic effects in the long run. At the same time, it is shown that this effect is attributable mostly to the impact of coordinated public policy shocks, as the literature on network externalities predicts.

Suggested Citation

  • Valter Di Giacinto & Giacinto Micucci & Pasqualino Montanaro, 2012. "Network effects of public transport infrastructure: evidence on Italian regions," Temi di discussione (Economic working papers) 869, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:wptemi:td_869_12
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    Keywords

    public capital; transport infrastructure; public policy coordination; network externalities; VEC model.;
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