On the Economics of Listed Infrastructure Returns

41 Pages Posted: 18 Feb 2021

See all articles by Ivo Ravenhorst

Ivo Ravenhorst

TiSEM - Tilburg School of Economics and Management

Date Written: December 24, 2020

Abstract

In this study, we provide a framework of economic drivers of the returns of listed communication-, energy-, transportation- and utility infrastructure. Using five decades of U.S. data, we find important relations between macroeconomic indicators and infrastructure sector performance. The analysis has significant implications for infrastructure investors in portfolio construction exercises. Investors seeking exposure to GDP should invest in transport, those investing in energy assets will be exposed to energy spot price volatility, while utilities investors are most exposed to interest rate risk.

Keywords: infrastructure listed economics performance returns sector transport utilities energy communication macroeconomic revenue

JEL Classification: G11

Suggested Citation

Ravenhorst, Ivo, On the Economics of Listed Infrastructure Returns (December 24, 2020). Available at SSRN: https://ssrn.com/abstract=3756664 or http://dx.doi.org/10.2139/ssrn.3756664

Ivo Ravenhorst (Contact Author)

TiSEM - Tilburg School of Economics and Management ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

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