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The Effects of Infrastructure Investment: A Two-Sector Dynamic Computable General Equilibrium Analysis for Ohio

Author

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  • Chang K. Seung

    (Department of Applied Economics and Statistics, University of Nevada, Reno, cks@unr.nevada.edu)

  • David S. Kraybill

    (Department of Agricultural, Environmental, and Development Economics, The Ohio State University, kraybill.1@osu.edu)

Abstract
The effects of increased public investment on regional output and welfare in Ohio are investigated using a regional dynamic computable general equilibrium model. Public investment affects the growth of the state economy, although the magnitude of the effect depends on the public capital elasticity. Our simulations indicate that public capital is underprovided in Ohio in base year 1990. Accounting for congestion in the use of infrastructure diminishes the positive effects of increased public investment only slightly. Beyond some level, more infrastructure investment does not increase the household welfare and can actually reduce it.

Suggested Citation

  • Chang K. Seung & David S. Kraybill, 2001. "The Effects of Infrastructure Investment: A Two-Sector Dynamic Computable General Equilibrium Analysis for Ohio," International Regional Science Review, , vol. 24(2), pages 261-281, April.
  • Handle: RePEc:sae:inrsre:v:24:y:2001:i:2:p:261-281
    DOI: 10.1177/016001701761013150
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    References listed on IDEAS

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    10. Byers, Steven & Cutler, Harvey & Davies, Stephen P., 2004. "Estimating Costs and Benefits of Economic Growth: A CGE-Based Study of Tax Incentives in a Rapidly Growing Region," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 34(4), pages 1-20.
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    15. Federici, Andrea, 2018. "Il rapporto tra capitale pubblico e altre variabili macroeconomiche: analisi della letteratura [The relationship between public capital and other macroeconomic variable: a literature review]," MPRA Paper 88515, University Library of Munich, Germany.
    16. Yoshino, Naoyuki & Abidhadjaev, Umid, 2016. "Impact of Infrastructure Investment on Tax: Estimating Spillover Effects of the Kyushu High-Speed Rail Line in Japan on Regional Tax Revenue," ADBI Working Papers 574, Asian Development Bank Institute.
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