Financial stability and economic growth
Remarks at the 2011 Bretton Woods Committee International Council Meeting, Washington, D.C.>
Fifth district roads
Is New England underinvesting in public infrastructure?
How does public infrastructure affect regional economic performance?
Bridge collapses and water main explosions focus national attention on the crumbling condition of the nations infrastructure. Catastrophic infrastructure failures are always a momentary spur to debate on the nations capital investment policies. But increasingly these negative developments have been accompanied by economists claims that public capital investment makes a significant contribution to national output, . productivity, growth, and international competitiveness ; This paper explores the impact of public capital on economic activity at the state and regional level. The author ...
Financing capital expenditures in Massachusetts
Spending on capital projects in Massachusetts has not contributed in any significant fashion to the states budget crisis. During the 1980s the state probably spent too little, rather than too much, on public infrastructure. The states nationwide are caught between the increased requirements of localities and decreased funding from the federal government. The Massachusetts situation is particularly troublesome. The state spent most of the 1980s embroiled in conflict with the Administration over federal funding for the Central Artery Depression! Third Harbor Tunnel project. ; The article ...
Is there a shortfall in public capital investment? An overview
This article summarizes the Banks economic conference held in June 1990. The conference aimed to determine the extent to which the United States may be underinvesting in public infrastructure, explain the potential economic consequences, and suggest mechanisms to help alleviate any adverse trends. It focused on public investment in physical capital only to make the topic manageable, and should not be interpreted to mean that investment in human capital is in any way less important. ; Two quite different perspectives on the need for more infrastructure investment emerge from the discussion. On ...
Infrastructure and regional economic performance: comment
Widely disparate results have flowed from various attempts to analyze the impact of public investment in tangible infrastructure on measures of economic activity. The author takes the substantial body of data put together by Munnell and Cook for 48 states over the years 1970 to 1986 and uses the data in pooled time series regressions, in pooled cross sections, and finally in distributed-lag investment functions. ; The authors results support Munnells finding that states that have more capital have greater output, even after taking into account both their amounts of labor (nonagricultural ...
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