U.S. Infrastructure: 1929-2023

29 Pages Posted: 29 Jan 2025

See all articles by Ray C. Fair

Ray C. Fair

Yale University - Cowles Foundation; Yale School of Management - International Center for Finance

Abstract

This paper examines the history of U.S. infrastructure since 1929 and in the process reports an interesting fact about the U.S. economy.Infrastructure stock as a percent of GDP began a steady decline around 1970, and thegovernment budget deficit became positive and large at roughly the same time.  The infrastructure pattern in other countries does not mirror that in the United States, so the United States appears to be a special case.  The overallresults suggest that the United States became less future oriented beginning around 1970, an increase in the social discount rate. This change has persisted.  This is the interestingfact. The paper contains speculation on possible causes.

Keywords: infrastructure, budget deficit, social discount rate

Suggested Citation

Fair, Ray C., U.S. Infrastructure: 1929-2023. Available at SSRN: https://ssrn.com/abstract=5116683 or http://dx.doi.org/10.2139/ssrn.5116683

Ray C. Fair (Contact Author)

Yale University - Cowles Foundation ( email )

Box 208281
New Haven, CT 06520-8281
United States
203-432-3715 (Phone)
203-432-6167 (Fax)

HOME PAGE: http://fairmodel.econ.yale.edu

Yale School of Management - International Center for Finance ( email )

Box 208200
New Haven, CT 06520
United States
203-432-3715 (Phone)
203-432-6167 (Fax)

HOME PAGE: http://fairmodel.econ.yale.edu

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