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Geography and Public Infrastructure

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  • Boarnet, Marlon G.

Abstract

This paper examines the possibility of negative output spillovers from public infrastructure. A model of productive public capital shows that, when input factors are mobile, public infrastructure investments in one location can draw production away from other locations. In a linear production function framework, this effect would be manifested as a negative output spillover from public capital. Using data for California counties from 1969 through 1988, such negative spillover effects are shown to exist in the case of highway and street capital. The data show that changes in county output are positively associated with changes in highway and street capital within the same county, but output changes are negatively associated with changes in highway and street capital in other counties.

Suggested Citation

  • Boarnet, Marlon G., 1996. "Geography and Public Infrastructure," University of California Transportation Center, Working Papers qt1fn223q7, University of California Transportation Center.
    • Handle: RePEc:cdl:uctcwp:qt1fn223q7
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    References listed on IDEAS

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    1. Douglas Holtz-Eakin & Amy Schwartz, 1995. "Spatial productivity spillovers from public infrastructure: Evidence from state highways," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 2(3), pages 459-468, October.
    2. Gramlich, Edward M, 1994. "Infrastructure Investment: A Review Essay," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1176-1196, September.
    3. John A. Tatom, 1991. "Public capital and private sector performance," Review, Federal Reserve Bank of St. Louis, issue May, pages 3-15.
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    5. Holtz-Eakin, Douglas & Newey, Whitney & Rosen, Harvey S, 1988. "Estimating Vector Autoregressions with Panel Data," Econometrica, Econometric Society, vol. 56(6), pages 1371-1395, November.
    6. Wilson, John D., 1986. "A theory of interregional tax competition," Journal of Urban Economics, Elsevier, vol. 19(3), pages 296-315, May.
    7. Clifford M. Winston, 1990. "How efficient is current infrastructure spending and pricing?," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 34, pages 183-222.
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    Cited by:

    1. Piotr Rosik, 2007. "Przestrzenne efekty zewnętrzne inwestycji infrastrukturalnych. Przypadek Galicii," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 1-2, pages 83-97.
    2. Jeffrey Cohen & Kristen Monaco, 2009. "Inter-county spillovers in California’s ports and roads infrastructure: the impact on retail trade," Letters in Spatial and Resource Sciences, Springer, vol. 2(2), pages 77-84, October.
    3. Boarnet, Marlon G., 1996. "The Direct and Indirect Economic Effects of Transportation Infrastructure," University of California Transportation Center, Working Papers qt1506r290, University of California Transportation Center.

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