The Broader Effects of Transportation Infrastructure: Spatial Econometrics and Productivity Approaches

The importance of "broader" economic effects of transportation infrastructure has recently become apparent. "Broader" refers to impacts beyond the geographic boundaries within which the infrastructure investments are undertaken. Approaches to estimate "broader" impacts in production and cost function models are evaluated. A contribution of this paper is the empirical demonstration with a cross-section of US states' manufacturing data that ignoring broader effects of a spatially lagged dependent variable can lead to mis-statements of the overall productive impacts of public infrastructure. These inaccuracies can arise because of missing indirect effects and from specification bias that may directly impact the infrastructure elasticity.

[1]  Catherine J. Morrison Paul,et al.  Airport infrastructure spillovers in a network system , 2003 .

[2]  L. Anselin,et al.  Measuring the benefits of air quality improvement: a spatial hedonic approach , 1998 .

[3]  D. Siegel,et al.  Scale Economies and Industry Agglomeration Externalities: A Dynamic Cost Function Approach , 1999 .

[4]  Luc Anselin,et al.  Testing for Spatial Error Autocorrelation in the Presence of Endogenous Regressors , 1997 .

[5]  K. Bell,et al.  Applying the Generalized-Moments Estimation Approach to Spatial Problems Involving Micro-Level Data , 2000, Review of Economics and Statistics.

[6]  Harry H. Kelejian,et al.  A Generalized Moments Estimator for the Autoregressive Parameter in a Spatial Model , 1999 .

[7]  Harry H. Kelejian,et al.  INFRASTRUCTURE PRODUCTIVITY ESTIMATION AND ITS UNDERLYING ECONOMETRIC SPECIFICATIONS: A SENSITIVITY ANALYSIS , 2005 .

[8]  Douglas Holtz-Eakin,et al.  Spatial productivity spillovers from public infrastructure: Evidence from state highways , 1995 .

[9]  Alicia Haydock Munnell,et al.  How Does Public Infrastructure Affect Regional Economic Performance , 1990 .

[10]  G. Isac.  Models and applications , 1992 .

[11]  Andreas Kopp.  Aggregate Productivity Effects of Road Investment - A Reassessment for Western Europe , 2005 .

[12]  H. Kelejian,et al.  A Generalized Spatial Two-Stage Least Squares Procedure for Estimating a Spatial Autoregressive Model with Autoregressive Disturbances , 1998 .

[13]  Marlon G. Boarnet,et al.  Spillovers and the Locational Effects of Public Infrastructure , 1998 .

[14]  Harry H. Kelejian,et al.  Estimation of simultaneous systems of spatially interrelated cross sectional equations , 2004 .

[15]  Jeffrey P. Cohen,et al.  The Impacts of Transportation Infrastructure on Property Values: A Higher-Order Spatial Econometrics Approach , 2007 .

[16]  Catherine J. Morrison Paul,et al.  State Infrastructure and Productive Performance , 1992 .

[17]  K. Small,et al.  Spatial Hedonics and the Willingness to Pay for Residential Amenities , 2012 .

[18]  Teresa García-Milá,et al.  The contribution of publicly provided inputs to states' economies☆ , 1992 .

[19]  Theofanis P. Mamuneas,et al.  The Effects of Public Infrastructure and R&D Capital on the Cost Structure and Performance of U.S. Manufacturing Industries , 1991 .

[20]  John Durkin,et al.  Tools and applications , 2002 .

[21]  Jeffrey P. Cohen,et al.  Public Infrastructure Investment, Inter-State Spatial Spillovers and Manufacturing Costs , 2001 .

[22]  David Alan Aschauer,et al.  IS PUBLIC EXPENDITURE PRODUCTIVE , 1989 .