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A model for Public Infrastructure Equalization in Transitional Economies

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  • Sophia Levtchenkova
  • Jeff Petchey

Abstract

In this paper, a simulation model is constructed that would enable policy-makers in transitional economies to estimate regionally disparate capital needs and direct capital expenditures to improve standards of public capital or services such as education and health. The model allows policy makers to achieve some degree of ‘equalisation in the regional distribution of publicly supplied capital to allow citizens greater equality of access to services, regardless of location. After developing an appropriate input database, the model is applied to South Africa. The results show that South Africa would need to commit about 2 percent of GDP to supplementary public capital expenditures if it is to make substantial inroads into attaining some form of public infrastructure equalisation over time.

Suggested Citation

  • Sophia Levtchenkova & Jeff Petchey, 2004. "A model for Public Infrastructure Equalization in Transitional Economies," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0414, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    • Handle: RePEc:ays:ispwps:paper0414
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    File URL: http://icepp.gsu.edu/files/2015/03/ispwp0414.pdf
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    Cited by:

    1. Leonzio Rizzo & Riccardo Secomandi, 2018. "Lo stock di capitale comunale: indicazioni per le politiche di intervento infrastrutturale di Regione Lombardia," Working Papers 2018117, University of Ferrara, Department of Economics.
    2. Jorge Martinez-Vazquez & Andrey Timofeev, 2014. "Capital Infrastructure and Equity Objectives in Decentralized Systems," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1410, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.

    More about this item

    Keywords

    transitional economies; capital expenditure; PIM; equalisation; infrastructure backlogs; public expenditure;
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