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Should transportation spending be included in a stimulus program? a review of the literature

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  • Sylvain Leduc
  • Daniel J. Wilson

Abstract

Transportation spending often plays a prominent role in government efforts to stimulate the economy during downturns. Yet, despite the frequent use of transportation spending as a form of fiscal stimulus, there is little known about its short- or medium-run effectiveness. Does it translate quickly into higher employment and economic activity or does it impact the economy only slowly over time? This paper reviews the empirical findings in the literature for the United States and other developed economies and compares the effects of transportation spending to those of other types of government spending.

Suggested Citation

  • Sylvain Leduc & Daniel J. Wilson, 2012. "Should transportation spending be included in a stimulus program? a review of the literature," Working Paper Series 2012-15, Federal Reserve Bank of San Francisco.
  • Handle: RePEc:fip:fedfwp:2012-15
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    File URL: http://www.frbsf.org/publications/economics/papers/2012/wp12-15bk.pdf
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    References listed on IDEAS

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    1. repec:nbr:nberch:13342 is not listed on IDEAS
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    4. Kuttner, Kenneth N. & Posen, Adam S., 2002. "Fiscal Policy Effectiveness in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 16(4), pages 536-558, December.
    5. Christophe Kamps, 2005. "The Dynamic Effects of Public Capital: VAR Evidence for 22 OECD Countries," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 12(4), pages 533-558, August.
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    Cited by:

    1. Holl, Adelheid, 2016. "Highways and productivity in manufacturing firms," Journal of Urban Economics, Elsevier, vol. 93(C), pages 131-151.

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    Keywords

    Fiscal policy ; Transportation;

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