Network Effects of Public Transport Infrastructure: Evidence on Italian Regions

51 Pages Posted: 2 Oct 2012

Date Written: July 26, 2012

Abstract

This paper contributes to the empirical literature on the magnitude of the network effects of public infrastructures, introducing a novel approach. After estimating the dynamics common to time series for the regional public capital stock, coordinated policy shocks are identified within a properly specified structural VEC model. The findings confirm previous evidence that transport infrastructures exert positive macroeconomic effects in the long run. At the same time, it is shown that this effect is attributable mostly to the impact of coordinated public policy shocks, as the literature on network externalities predicts.

Keywords: public capital, transport infrastructure, public policy coordination, network externalities, VEC model

JEL Classification: C32, E61, H54, R42, R53

Suggested Citation

Di Giacinto, Valter and Micucci, Giacinto and Montanaro, Pasqualino, Network Effects of Public Transport Infrastructure: Evidence on Italian Regions (July 26, 2012). Bank of Italy Temi di Discussione (Working Paper) No. 869. Available at SSRN: https://ssrn.com/abstract=2154913 or http://dx.doi.org/10.2139/ssrn.2154913

Valter Di Giacinto (Contact Author)

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Giacinto Micucci

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Pasqualino Montanaro

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

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