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U.S. Infrastructure: 1929-2023

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  • Ray C. Fair

    (Yale University)

Abstract

This paper examines the history of U.S. infrastructure since 1929 and in the process reports an interesting fact about the U.S. economy. Infrastructure stock as a percent of GDP began a steady decline around 1970, and the government budget deficit became positive and large at roughly the same time. The infrastructure pattern in other countries does not mirror that in the United States, so the United States appears to be a special case. The overall results suggest that the United States became less future oriented beginning around 1970, an increase in the social discount rate. This change has persisted. This is the interesting fact. The paper contains speculation on possible causes.

Suggested Citation

  • Ray C. Fair, 2025. "U.S. Infrastructure: 1929-2023," Cowles Foundation Discussion Papers 2422, Cowles Foundation for Research in Economics, Yale University.
    • Handle: RePEc:cwl:cwldpp:2422
    as

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    File URL: https://cowles.yale.edu/sites/default/files/2025-01/d2422.pdf
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    References listed on IDEAS

    as
    1. Mehrotra, Neil & Turner, Matthew A. & Uribe, Juan Pablo, 2024. "Does the US have an infrastructure cost problem? Evidence from the interstate highway system," Journal of Urban Economics, Elsevier, vol. 143(C).
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    3. César Calderón & Enrique Moral‐Benito & Luis Servén, 2015. "Is infrastructure capital productive? A dynamic heterogeneous approach," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 30(2), pages 177-198, March.
    4. Fraumeni, Barbara M. & Kornfeld, Robert, 2024. "Constructing BEA Highways and Streets Net Wealth Stocks with Detailed Types of Investment and Engineering-Based Estimates of Depreciation," IZA Discussion Papers 17157, Institute of Labor Economics (IZA).
    5. Barbara M. Fraumeni & Robert Kornfeld, 2024. "Constructing BEA Highways and Streets Net Wealth Stocks with Detailed Types of Investment and Engineering-based Estimates of Depreciation," NBER Working Papers 32753, National Bureau of Economic Research, Inc.
    6. Austan Goolsbee & Chad Syverson, 2022. "The Strange and Awful Path of Productivity in the US Construction Sector," NBER Chapters, in: Technology, Productivity, and Economic Growth, National Bureau of Economic Research, Inc.
    7. Janet Currie & Reed Walker, 2019. "What Do Economists Have to Say about the Clean Air Act 50 Years after the Establishment of the Environmental Protection Agency?," Journal of Economic Perspectives, American Economic Association, vol. 33(4), pages 3-26, Fall.
    Full references (including those not matched with items on IDEAS)

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