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Geography and Public Infrastructure

  • Boarnet, Marlon G.

This paper examines the possibility of negative output spillovers from public infrastructure. A model of productive public capital shows that, when input factors are mobile, public infrastructure investments in one location can draw production away from other locations. In a linear production function framework, this effect would be manifested as a negative output spillover from public capital. Using data for California counties from 1969 through 1988, such negative spillover effects are shown to exist in the case of highway and street capital. The data show that changes in county output are positively associated with changes in highway and street capital within the same county, but output changes are negatively associated with changes in highway and street capital in other counties.

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File URL: http://www.escholarship.org/uc/item/1fn223q7.pdf;origin=repeccitec
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Paper provided by University of California Transportation Center in its series University of California Transportation Center, Working Papers with number qt1fn223q7.

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Date of creation: 01 Jan 1996
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Handle: RePEc:cdl:uctcwp:qt1fn223q7
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  1. Clifford M. Winston, 1990. "How efficient is current infrastructure spending and pricing?," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 34, pages 183-222.
  2. Holtz-Eakin, Douglas & Newey, Whitney & Rosen, Harvey S, 1988. "Estimating Vector Autoregressions with Panel Data," Econometrica, Econometric Society, vol. 56(6), pages 1371-95, November.
  3. Gramlich, Edward M, 1994. "Infrastructure Investment: A Review Essay," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1176-96, September.
  4. Wilson, John D., 1986. "A theory of interregional tax competition," Journal of Urban Economics, Elsevier, vol. 19(3), pages 296-315, May.
  5. John A. Tatom, 1991. "Public capital and private sector performance," Review, Federal Reserve Bank of St. Louis, issue May, pages 3-15.
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