Public Infrastructure Investment, Renewed Economic Growth, and the U.S. Fiscal Position
Robert C. Hockett
Cornell University - Law School
Robert H. Frank
Cornell University - Department of Economics
January 18, 2012
Cornell Legal Studies Research Paper No. 2-04
We show that large-scale debt-financed public infrastructure spending, in addition to (a) generating growth and employment on a similarly large scale and (b) significantly reducing inefficiency-generated public and private costs economy-wide, will also (c) be substantially “self-financing” by dint of the revenue gains that it likewise will generate. Not to pursue such projects now, moreover, with (a) labor, material, and financing costs at historic lows, and (b) cost-acceleration set to kick-in in the very near future, will itself occasion large-scale implicit costs. Insofar as these investments are agreed by all to be necessary at some point, now is that point.
Number of Pages in PDF File: 35
Keywords: Mortgages, mortgage debt, mortgage relief, bridge loans, bridge loan assistance, foreclosure prevention, housingworking papers series
Date posted: January 19, 2012
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