Public Infrastructure and Growth: New Channels and Policy Implications

This paper provides an overview of the various channels through which public infrastructure may affect growth. In addition to the conventional productivity, complementarity, and crowding-out effects typically emphasized in the literature, the impact of infrastructure on investment adjustment costs, the durability of private capital, and the production of health and education services are also highlighted. Effects on health and education are well documented in a number of microeconomic studies, but macroeconomists have only recently begun to study their implications for growth. Links between health, infrastructure, and growth are illustrated in an endogenous growth model with transitional dynamics, and the optimal allocation of public expenditure is discussed. The concluding section draws implications of the analysis for the design of strategies aimed at promoting growth and reducing poverty.

Bibliographic Details

Main Authors:	Agénor, Pierre-Richard, Moreno-Dodson, Blanca
Format:	Policy Research Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2006-11
Subjects:	ACCELERATOR, ACCELERATOR EFFECT, ACCESS TO INFORMATION, ACCESSIBILITY, ADVERSE EFFECT, AGGREGATE DEMAND, AIR, AIR POLLUTION, BASIC INFRASTRUCTURE, CAPITAL MARKETS, CLINICS, CONGESTION, CONGESTION COSTS, CONGESTION ON HIGHWAYS, CONSTANT RETURNS TO SCALE, COST FUNCTIONS, COST OF CAPITAL, DEATH RATE, DEBT, DEFICITS, DEPRECIATION, DEVELOPMENT ECONOMICS, DIMINISHING RETURNS, DOMESTIC CONSUMPTION, ECONOMIC GROWTH, ELASTICITY, ELASTICITY OF SUBSTITUTION, ELECTRICITY, EMPLOYMENT, EVASION, EXPANSION, EXPORTS, EXTERNALITIES, FAMILIES, FIRMS, FOREIGN MARKETS, FORMAL ANALYSIS, FREIGHT, FUELS, GDP, GOVERNMENT DEBT, GOVERNMENT SPENDING, GROWTH RATE, HEALTH CARE, HEALTH INDICATORS, HEALTH INTERVENTIONS, HEALTH OUTCOMES, HEALTH SERVICES, HIGHWAY, HOSPITALS, HUMAN CAPITAL, HYGIENE, INCOME, INFLATION, INFRASTRUCTURE INVESTMENT, INTEREST RATE, INTEREST RATES, LIFE EXPECTANCY, MACROECONOMICS, MARGINAL COST, MARGINAL PRODUCT, MARGINAL PRODUCTIVITY, MORBIDITY, MORTALITY, NUTRITION, NUTRITIONAL STATUS, OPEN ECONOMY, POLIO, POLITICAL ECONOMY, PRICE EFFECT, PRIMARY HEALTH CARE, PRIVATE CAPITAL, PRIVATE INVESTMENT, PRIVATE INVESTORS, PRIVATE SECTOR, PRODUCTION COSTS, PRODUCTION FUNCTION, PRODUCTION INPUTS, PRODUCTIVITY, PROPERTY RIGHTS, PUBLIC, PUBLIC BORROWING, PUBLIC DEBT, PUBLIC EXPENDITURE, PUBLIC INFRASTRUCTURE, PUBLIC INVESTMENT, PUBLIC INVESTMENT IN INFRASTRUCTURE, PUBLIC ROADS, PUBLIC SECTOR, PUBLIC SPENDING, PUBLIC TRANSPORTATION, PUBLIC WORKS, PUBLIC-PRIVATE PARTNERSHIPS, RAILROAD, RAILWAYS, RISK PREMIUM, ROAD, ROAD CONDITIONS, ROAD INFRASTRUCTURE, ROAD MAINTENANCE, ROAD NETWORK, ROADS, RURAL ROADS, SANITATION, SANITATION FACILITIES, SCALE EFFECT, SCHOOL HEALTH, SIBLINGS, SMALL FIRMS, SUB-SAHARAN AFRICA, SUBSTITUTION EFFECT, SUPPLY CURVE, TAX, TAX RATES, TAX REVENUES, TAXATION, TELECOMMUNICATIONS, TOLL, TOTAL FACTOR PRODUCTIVITY, TOTAL FACTOR PRODUCTIVITY GROWTH, TRAFFIC, TRANSPORT, TRANSPORT COSTS, TRANSPORT FACILITIES, TRANSPORTATION, TRANSPORTATION NETWORKS, TRANSPORTATION SERVICES, TRANSPORTATION SUBSIDIES, TRANSPORTATION SYSTEM, TRUCKS, VACCINATION, VEHICLE, VEHICLE OPERATING, VEHICLE OPERATING COSTS, WAGES, WATER SUPPLY, WATER SYSTEMS, WEALTH, WORKERS,
Online Access:	http://documents.worldbank.org/curated/en/2006/11/7188045/public-infrastructure-growth-new-channels-policy-implications http://hdl.handle.net/10986/8880
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