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Public Infrastructure Investment, Renewed Economic Growth, and the U.S. Fiscal Position

35 Pages Posted: 19 Jan 2012  

Robert C. Hockett

Cornell University - Law School

Robert H. Frank

Cornell University - Department of Economics

Date Written: January 18, 2012

Abstract

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.

Keywords: Mortgages, mortgage debt, mortgage relief, bridge loans, bridge loan assistance, foreclosure prevention, housing

Suggested Citation

Hockett, Robert C. and Frank, Robert H., Public Infrastructure Investment, Renewed Economic Growth, and the U.S. Fiscal Position (January 18, 2012). Cornell Legal Studies Research Paper No. 2-04. Available at SSRN: https://ssrn.com/abstract=1987656 or http://dx.doi.org/10.2139/ssrn.1987656

Robert C. Hockett (Contact Author)

Cornell University - Law School ( email )

Myron Taylor Hall
Cornell University
Ithaca, NY 14853-4901
United States

Robert Frank

Cornell University - Department of Economics ( email )

414 Uris Hall
Ithaca, NY 14853-7601
United States
607-255-8501 (Phone)
607-254-4590 (Fax)

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