Impact Of Public Infrastructure Research Articles

The spatial structure of housing affordability and the impact of public infrastructure

ABSTRACT We develop a parsimonious agent-level model of the housing market that reproduces the spatial price structure of London at the level of each property. Prices emerge as agents make utility-driven choices on properties with specific attributes in decentralised market interactions. This specification facilitates matching individual households to specific properties, something not possible in most publicly available large-scale housing datasets. Because location is a feature of properties, we estimate the impact of the new Elizabeth Line that connects the city from east to west. Then, by combining household and property variables, we estimate its impact on affordability. Changes in affordability allow to foresee potential demographic changes across space. Such information is extremely valuable not only to households and developers, but also to planning authorities who wish to anticipate the future demand for services and test the viability of different local tax regimes.

The Spatial Structure of Housing Affordability and the Impact of Public Infrastructure

The Spatial Structure of Housing Affordability and the Impact of Public Infrastructure

Impact of Public Infrastructure on Output of U.S. Food Manufacturing Industries: A Heterogeneous Dynamic Panel Approach

ABSTRACTThis study analyzes the long‐run impacts of public infrastructure on output of 34 U.S. food manufacturing/processing industries during 1958–2000 using heterogeneous dynamic panel methods, including mean group and pooled mean group methods. The results suggest that public infrastructure has a long‐term output impact across U.S. food manufacturing and processing industries. A 1% increase in public infrastructure increases U.S. food manufacturing output by 0.06% in the long run. The long‐run positive impact of public infrastructure on food output suggests its importance to the food manufacturing sector of continuous public infrastructure investment [EconLit citations: Q13; H54; C33].

The Impact of Public Infrastructure on Productivity: New Evidence for Australia

This paper presents new evidence on the impact of public infrastructure on the Australian economy. The contribution of the paper is three-fold. First, it estimates measures of multifactor productivity for each of the states and territories. Second, it employs a new data set on public infrastructure. Third, the paper applies detailed econometric investigations in an attempt to readdress the crucial econometric shortcomings of earlier studies. The analysis presented here is designed to investigate two widely-debated questions. First, whether aggregate time-series analysis is incapable of capturing infrastructure spillovers to productivity and, consequently, results in incredibly high estimates of infrastructure elasticity. Second, whether state-specific characteristics exhibit a significant role in explaining effects on productivity. To answer the first question, the study applies time-series regressions on both a national and state-by-state basis. Results from this approach confirm the implausibly large effect of infrastructure for the whole economy and four states. To examine the second issue, the paper develops a panel cointegration model which controls for state fixed effects. In sharp contrast with findings from aggregate time-series, results from the fixed effects approach are more plausible and robust to sensitivity tests. In another piece of evidence, estimation of an error-correction model reveals that a long-run identification and modelling of the relationship (i.e. a cointegration) reflects the important positive role of infrastructure on productivity. However, short-run dynamics provide no support for a positive effect which explains why earlier studies which employed differenced data found infrastructure has no discernible effect on productivity. In addition, applying a causality test suggests a long-run unidirectional causality running from public infrastructure to productivity.

The Impact of Public Infrastructure on Canadian Multifactor Productivity Estimates

This paper makes use of a growth accounting framework to examine the importance of public capital for private sector productivity growth. Most measures of multifactor productivity consider only the inputs of the business sector. This paper produces an alternate measure of multifactor productivity for the business sector that incorporates the impact of public capital. It uses the estimate of the elasticity of business sector output with respect to public capital derived from Macdonald (2008). Over the period, the conventional estimate of MFP growth averages 0.4% per year. About half of this growth is attributable to public capital.

Public Infrastructure in Canada, 1961-2002

Work by Aschauer (1989) triggered a debate in the United States on the role played by public capital in determining productivity and growth; more recently, infrastructure has become an issue in the Canadian public policy debate. This paper sheds some light on this debate by addressing three questions: (i) How large is the stock of public infrastructure in Canada? (ii) What are the main components of that infrastructure? (iii) How has that infrastructure evolved over the last 40 years? The paper also examines the impact of public infrastructure on Canada's standard of living and on the performance of the business sector.

The Impact of Public Infrastructure on the Productivity of the Chilean Economy

AbstractThe aim of this study is to assess the effect of the change in infrastructure capital on the cost structure of the Chilean economy, and thereby on productivity, differentiating between two key institutional periods. A further aim is to establish the extent to which infrastructure capital formation affects private capital. The authors use an econometric estimation of the cost elasticity of infrastructure. Conclusions indicate that an increased infrastructure capital reduces the production cost of the economy, thereby increasing productivity, mostly in the second period. In turn, especially in this latter period, infrastructure capital formation appears to assert both a positive cost‐share effect on private capital and a negative cost‐share effect on labor. These effects can be explained to a large extent by the significant differences between the institutional structures of the two consecutive periods studied.

Public infrastructure and productivity growth in Greek agriculture

AbstractRecent research has focused on the effect of public infrastructure on economic performance. In this paper, a model of Greek agriculture's technology and behaviour is constructed based on the dual cost function framework. The model provides a decomposition of productivity growth into the components technical change, returns to scale, and public infrastructure. The empirical estimates indicate that public infrastructure investment provides a significant return to agriculture and augments productivity growth. Over the period 1960–1995, the impact of public infrastructure on productivity growth in livestock and crop production is found to be positive, although it has been declining since the late 1970s. These results strongly suggest that a decline in public infrastructure investment can partly explain the observed decline in the productivity growth of Greek agriculture in the 1980s.

Public infrastructure and productivity growth in Greek agriculture

Recent research has focused on the effect of public infrastructure on economic performance. In this paper, a model of Greek agriculture’s technology and behaviour is constructed based on the dual cost function framework. The model provides a decomposition of productivity growth into the components technical change, returns to scale, and public infrastructure. The empirical estimates indicate that public infrastructure investment provides a significant return to agriculture and augments productivity growth. Over the period 1960–1995, the impact of public infrastructure on productivity growth in livestock and crop production is found to be positive, although it has been declining since the late 1970s. These results strongly suggest that a decline in public infrastructure investment can partly explain the observed decline in the productivity growth of Greek agriculture in the 1980s.

The Impact of Public Infrastructure on the Productivity of the Chilean Economy

The aim of the present study is to assess the effect of public infrastructures on the cost structure of the Chilean economy, and thereby on productivity, differentiating between two key sequential periods. A derived aim is to establish to what extent infrastructure and non-infrastructure capitals are related. Our conclusions appear to indicate that infrastructure capital reduces the production cost of the economy, thereby increasing productivity, only in the second period. In turn, non-infrastructure capital appears to be mostly unrelated to infrastructure capital in the first period, but to be clearly complementary in the second period. In addition, infrastructure capital and labour appear to be substitutive in the first period, but mostly unrelated in the second period. Complementarity, neutrality and substitution can to a large extent be explained by the dramatic differences in the institutional structures between these two periods.

THE IMPACT OF PUBLIC INFRASTRUCTURE ON MUNICIPAL ECONOMIC DEVELOPMENT: EMPIRICAL RESULTS FROM KENYA

This paper considers the role of public infrastructure in municipal economic development in Kenya. The primary objectives of the examination are to estimate the impact of roads and water infrastructure on municipal incomes, to ascertain the extent to which differences in institutional authority over water service delivery affect the quantity or quality of infrastructure, and to determine whether the presumed simultaneity between infrastructure and incomes matters for purposes of estimating the effect of the former on the latter. The analysis provides evidence to suggest that the impact of public infrastructure in the roads and water sectors on municipal economic development is significant. Also, the examination implies that local governments, when given authority over water services, do not appear to provide a larger quantity of water infrastructure than does the central government and/or its parastatal. On the other hand, and perhaps more significantly, the paper provides some initial evidence that the public water infrastructure services provided by local authorities are more accessible and reliable than those provided by central institutions. Finally, the results of the paper support the conclusion that possible simultaneity between public infrastructure and incomes does not seem to matter for estimating the quantitative impact of infrastructure on economic development.