Effects Of Structural Change In The Us Economy On The Use Of Public Works Services

A report on America's public works : final report to the President and the Congress.

This paper reviews the linkages between infrastructure and economic development based on both formal empirical research and informal case studies. The main thesis is that economic benefits result from investments in infrastructure only to the extent that they generate a sustainable flow of services valued by consumers. Thus, an analysis of infrastructures' contributions to growth must look at the impacts of services as actually perceived, not at indirect indicators that measure only aggregate provision of infrastructure capital. The paper notes that macro and industry level research , although having its limitations, suggest a positive and statistically significant relationship between infrastructure and economic output. However the conclusions derived from this research (most of which derives from developed countries) provide little specific guidance for policy. To gain more practical insights about how infrastructure contributes to economic growth and to improved quality of life, and to understand the welfare costs of inadequate or unreliable infrastructure, it is necessary to look at microeconomic evidence. Particularly interesting illustrations of these relationships are to be found in developing countries where there is wide variance in the availability and quality of infrastructure.

Provided is an overview of the Nation's transportation system which identifies future investments required to maintain and develop its infrastructure. The contents of this study were used in support of the National Transportation Policy Statement, issued by the Department of Transportation during March 1990. It is organized around a framework in which transportation is viewed as an integral part of our socioeconomic system. The future development of transportation will be influenced by the same factors affecting the rest of the system, namely, demographic changes, the future course of the economy, the energy supply, and preservation of the environment.

The book examines the complex relationships between infrastructure and the rest of the economy. In particular, it focuses on the contentious issue of whether infrastructure investments stimulate productivity growth, issues of pricing and ownership, and also development problems such as environmental damage. Methods range from traditional production function models and compensating variation approaches to nonlinear methods of dynamic analysis. There is a unique emphasis on the ability of these different methods to allow for the complex interdependencies involved. Six of the fifteen papers deal with these methodological aspects, whereas the remainder addresses specific cases or examples in a variety of countries (Europe, USA and developing countries).