Accessibility navigation


Growth and public infrastructure

Downloads

Downloads per month over past year

Hashimzade, N. and Myles, G. D. (2010) Growth and public infrastructure. Macroeconomics Dynamics, 14 (Supple). pp. 258-274. ISSN 1469-8056

[img] Text - Published Version
· Please see our End User Agreement before downloading.

284Kb

To link to this article DOI: 10.1017/S1365100510000374

Abstract/Summary

The paper analyzes a multicountry extension of the Barro model of productive public expenditure. In the presence of positive infrastructural externalities between countries, the provision of infrastructure will be inefficiently low if countries do not coordinate. This provides a role for a supranational body, such as the European Union, to coordinate the policies of the individual governments. It is shown how intervention by a supranational body can raise welfare by internalizing the infrastructural externality. Infrastructural externalities increase the importance of tax policy in the growth process and distribute the benefits of taxation across countries.

Item Type:Article
Refereed:Yes
Divisions:Faculty of Arts, Humanities and Social Science > School of Politics, Economics and International Relations > Economics
ID Code:16926
Uncontrolled Keywords:Public Infrastructure, Growth, Externalities
Additional Information:Supplement S2 (Public Policy, Externalities, and Economic Growth)
Publisher:Cambridge University Press

Download Statistics for this item.

University Staff: Request a correction | Centaur Editors: Update this record

Page navigation