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Effects of Physical Infrastructure Spending on the Economy and the Budget Under Two Illustrative Scenarios

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  • Congressional Budget Office

Abstract

Increases in physical infrastructure spending would boost private-sector productivity in the coming decades, contributing to economic growth that could lower the budgetary cost of that spending. To study such increases, CBO examined two illustrative scenarios that would boost federal funding for a mix of types of physical infrastructure by $500 billion over 10 years. The effects of macroeconomic changes on the budget would depend on how additional infrastructure spending was financed and on the time period considered.

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  • Congressional Budget Office, 2021. "Effects of Physical Infrastructure Spending on the Economy and the Budget Under Two Illustrative Scenarios," Reports 57327, Congressional Budget Office.
    • Handle: RePEc:cbo:report:57327
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    File URL: https://www.cbo.gov/system/files/2021-08/57327-Infrastructure.pdf
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    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General

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