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

Transportation Research Part E: Logistics and Transportation Review, 46(3), pp.317-326

Posted: 8 Aug 2016

See all articles by Jeffrey Cohen

Jeffrey Cohen

University of Connecticut - School of Business

Date Written: August 6, 2009

Abstract

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.

Keywords: Transportation Infrastructure, Spillovers, Spatial Econometrics

JEL Classification: R4

Suggested Citation

Cohen, Jeffrey, The Broader Effects of Transportation Infrastructure: Spatial Econometrics and Productivity Approaches (August 6, 2009). Transportation Research Part E: Logistics and Transportation Review, 46(3), pp.317-326, Available at SSRN: https://ssrn.com/abstract=2819581

Jeffrey Cohen (Contact Author)

University of Connecticut - School of Business ( email )

368 Fairfield Road
Storrs, CT 06269-2041
United States

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