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Building Infrastructure to Accomodate Growth

Author

Listed:
  • Leon Taylor

    (Tulane University)

Abstract

Do jurisdictions spend too little on infrastructure? To answer the question, one must separate infrastructure built to accommodate growth from infrastructure built to compete for growth. Underspending is most likely for accommodative infrastructure. This paper finds that the accommodative spending path that maximizes utility is also the path leading to an equilibrium. Empirical data that suggest an equilibrium would cast doubt upon the underspending hypothesis. The paper also compares accommodative spending to competitive spending and develops an empirical test of their relative importance.

Suggested Citation

  • Leon Taylor, 1991. "Building Infrastructure to Accomodate Growth," Eastern Economic Journal, Eastern Economic Association, vol. 17(4), pages 473-481, Oct-Dec.
    • Handle: RePEc:eej:eeconj:v:17:y:1991:i:4:p:473-481
    as

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    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume17/V17N4P473_481.pdf
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    References listed on IDEAS

    as
    1. Rietveld, Piet, 1989. "Infrastructure and Regional Development: A Survey of Multiregional Economic Models," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 23(4), pages 255-274.
    2. Alan S. Blinder, 1990. "Learning by Asking Those Who Are Doing," Eastern Economic Journal, Eastern Economic Association, vol. 16(4), pages 297-306, Oct-Dec.
    3. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-255, March-Apr.
    4. Holtz-Eakin, Douglas & Rosen, Harvey S., 1989. "The `rationality' of municipal capital spending : Evidence from New Jersey," Regional Science and Urban Economics, Elsevier, vol. 19(3), pages 517-536, August.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Figuières, Charles & Gardères, Philippe & Rychen, Frédéric, 2002. "Infrastructures publiques et politiques de développement décentralisées," L'Actualité Economique, Société Canadienne de Science Economique, vol. 78(4), pages 539-570, Décembre.

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    More about this item

    Keywords

    Infrastructure;

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures

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