Economics, Econometrics and Finance
8 years ago

Increased infrastructure spending has minimal impact on productivity growth, study finds.

INFRASTRUCTURE IN A STRUCTURAL MODEL OF ECONOMIC GROWTH. IN: TRANSPORT INFRASTRUCTURE
Douglas Holtz‐Eakin, Amy Ellen Schwartz

Paper Summary

The article explores how infrastructure affects economic growth. The researchers created a model to study the impact of public capital on productivity growth. They found that increasing infrastructure investment had little effect on productivity growth from 1971 to 1986.

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