Stone, Joe and Bania, Neil and Gray, Jo Anna (2010): Public Infrastructure, Education, and Economic Growth: Region-Specific Complementarity in a Half-Century Panel of States.
This is the latest version of this item.
Download (89kB) | Preview
We find region-specific complementarity between investments in public infrastructure and education, both k-12 and postsecondary. The complementarity helps to explain how regions capture returns to investments in education even when residents are mobile, and is strong enough for the effect of tax-financed expenditures on either public infrastructure or education to be significantly positive when spending on the other is high, even though the independent effect of either one is negative. Effects are identified using a recursive structure, very long lags, GMM-instrumental variables, and multiple controls for heterogeneity. Estimates are robust across identification strategies, estimators, and instruments.
|Item Type:||MPRA Paper|
|Original Title:||Public Infrastructure, Education, and Economic Growth: Region-Specific Complementarity in a Half-Century Panel of States|
|Keywords:||infrastructure; education complementarity economic growth|
|Subjects:||J - Labor and Demographic Economics > J0 - General > J00 - General|
|Depositing User:||Joe/A. Stone|
|Date Deposited:||31. Mar 2010 05:58|
|Last Modified:||30. Dec 2015 13:00|
Aghion, Philippe, Leah Boustan, Caroline Hoxby, and Jerome Vandenbussche, “The Causal Impact of Education on Economic Growth: Evidence from United States” Brookings Papers on Economic Activity, April 2009 Conference.
Arellano, Manuel and Olympia Bover, “Another Look at the Instrumental Variables Estimation of Error-Components Models,” Journal of Econometrics 68 No. 1 (July, 1995): 29-51.
Arellano, Manuel and Stephen Bond, “Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,” Review of Economic Studies 58 No. 2 (April, 1991): 277-97.
Aschauer, David, “How Big Should the Public Capital Stock Be? The Relationship between Public Capital and Economic Growth,” Economics Public Policy Brief Archive 43A, Levy Economics Institute, September 1998.
Bania, Neil, Jo Anna Gray, and Joe A. Stone, “Growth, Taxes, and Government Expenditures: Growth Hills for U.S. States,” National Tax Journal, 60:2 (June 2007), 193-204.
Barro, R., Mankiw, N.G. and Sala-i-Martin X, “Capital Mobility in Neoclassical Models of Growth,” American Economic Review, 85(1) (March 1995), 103-115.
Barro, Robert and Xavier Sala-i-Martin, “Public Finance in Models of Economic Growth,” Review of Economic Studies 59 No. 4 (October, 1992): 645-661.
Barro, Robert, “Government Spending in a Simple Model of Endogenous Growth,” Journal of Political Economy 98 No. 5 (October, 1990): 103-117.
Ciccone, Antonio and Elias Papaioannou, “Human Capital, the Structure of Production and Growth,” The Review of Economics and Statistics, February 2009, 91(1): 66–82.
Cohen, Jeffrey and Catherine Paul, “Public Infrastructure Investment, Interstate Spatial Spillovers, and Manufacturing Costs,” The Review of Economics and Statistics 86:2, May 2004, 551-60.
Duffy-Deno K. and Randall Eberts, “Public Infrastructure and Regional Economic Development,” Journal of Urban Economics 30:3 (1991), 329-343.
Eberts, Randall and Joe Stone, Wage and Employment Adjustment in Local Labor Markets, Kalamazoo, MI: W. E. Upjohn Institute for Employment Research, 1992.
Evans, Paul and George Karras, “Are Government Activities Productive? Evidence from a Panel of U.S. States,” The Review of Economics and Statistics 76:1 (February, 1994), 1-11.
EViews: User’s Guide. Irvine, CA: Quantitative Micro Software, LLC, (2004).
Available Versions of this Item
- Public Infrastructure, Education, and Economic Growth: Region-Specific Complementarity in a Half-Century Panel of States. (deposited 31. Mar 2010 05:58) [Currently Displayed]