Infrastructure and social welfare in metropolitan America

Public infrastructure investment may indirectly affect firm productivity and household welfare through its impact on the location of economic activity. Existing infrastructure policies encourage firms and households to move from dense urban environments to the surrounding suburbs. Nevertheless, several recent studies have suggested that the concentration of producers and consumers within cities results in "agglomeration economies" that are socially beneficial. In light of these findings, the author recommends the creation of infrastructure investment authorities that would have the power to select and finance projects that promote the overall well-being of a given region. Such authorities would most likely direct a larger share of infrastructure investment to the central cities.Industrial location ; Infrastructure (Economics) ; Investments ; Public welfare

Investing in America\u27s Surface Transportation Infrastructure: The Need for a Multi-Year Reauthorization Bill: Hearing Before the S. Comm. on Env\u27t & Pub. Works, 116th Cong., July 10, 2019

The Fourth National Climate Assessment, released in November 2018, described the serious impacts of climate change already being felt throughout the U.S., and made clear that the risks to communities all across the country are growing rapidly. These findings, along with those in the 2018 Intergovernmental Panel on Climate Change (IPCC) report should serve as an immediate call to action. Even if we manage to limit planetary warming to just 2 degrees Celsius, the world will still face increased chances of economic and social upheaval from more severe flooding, droughts, heatwaves, and other climate impacts as well as devastating environmental consequences, the IPCC report warns. The consensus from leading scientific research academies within the United States and internationally is clear: multiple lines of evidence indicate, and have indicated for years, that our atmosphere is warming, sea levels are rising, the magnitude and frequency of certain extreme weather events is increasing, and that human activity is the primary driver of climate change. As described in the IPCC Special Report, the consensus is that countries around the world must rapidly decarbonize their economies, cutting greenhouse gas emissions in half by 2030 and to near zero by 2050. The U.S. Department of Defense, and leaders within the defense and national security communities, have also recognized climate change as a “national security issue” that requires adapting military operations and planning to ensure readiness. Despite our understanding of the consequences we will face and the urgency to act, U.S. GHG emissions from fossil fuel combustion increased by 2.7 percent in 2018, according the Rhodium Group. Clearly more action is needed. While we all recognize the importance of transportation in our daily lives and for our economy, it is also important to recognize that the transportation sector is the largest contributor of GHG emissions in the United States, and is already facing significant impacts from climate change. There is an urgent need, therefore, to transition to a low-carbon and more resilient transportation system. Such a transition would not only reduce emissions and fight climate change, it also would bring additional important benefits, including protecting public health by reducing conventional air pollution, providing more mobility options, and driving innovation and economic growth through policy action and through public and private investment

A Continuing Record of Achievement: The Economic Impact of Ben Franklin Technology Partners 2002 - 2006

The Economy League of Greater Philadelphia was commissioned by Ben Franklin Technology Partners to conduct an independent, objective evaluation of the economic impact of the program from 2002 to 2006, focusing on its role in providing financing and related services to early-stage and established technology-based firms in Pennsylvania.In 1982, the Pennsylvania General Assembly established the Advanced Technology Centers of the Ben Franklin Partnership to promote technological innovation and spur conomic growth in the Commonwealth. Since then, in a series of subsequent legislative acts, the organization took its present-day shape as the Ben Franklin Technology Partners (BFTP). Over the years, BFTP has periodically supplemented its annual performance assessment with in-depth analyses of the impact of the program. With the arrival of its 25th anniversary since beginning operations, BFTP decided to undertake another in-depth evaluation of the impact of its funding and services on individual companies and the overall economy of Pennsylvania. This study continues BFTP's efforts to objectively measure the impact of the program and gather information that is useful for future strategy and program enhancement.Key findings of this study include:BFTP boosted the Pennsylvania economy (Gross State Product) by $9.3 billion from 2002 through 2006, or$8.7 billion after adjusting for inflation.Since 1989, BFTP has boosted the state's economy by more than $17 billion.From 2002 though 2006, the Commonwealth received more than$517 million in additional state tax revenues as a direct result of BFTP. That represents a 3.5-to-1 payback to the state on its $140 million investment during the same period.From 2002 through 2006, BFTP generated 10,165 additional job-years* in client firms.Client impacts ripple throughout the Pennsylvania economy, contributing to higher Gross State Product and additional employment across the state. From 2002 through 2006, BFTP generated an additional 22,667 job-years in the state beyond those in client firms.BFTP produced a total of 32,832 job-years in the Commonwealth between 2002 and 2006 that otherwise would not have existed.Since 1989, BFTP has generated 45,667 additional job-years in client firms.Since 1989, BFTP generated 80,160 additional job-years beyond those in client firms, for a total of 125,827 additional job-years.* Job-years are equivalent to the number of years of full-time work created by the program. For example, if a BFTP client firm employed three more workers for five years as a direct result of the program, that is expressed as 15 additional job-year

Without purpose and strategy?: a spatio-functional analysis of the regional allocation of public investment in Greece

We utilise a large database on public investment at the prefecture (NUTS-3) level in Greece for the period 1976-2008 to examine the spatial and functional allocation of public investment in the country. We investigate the extent to which expenditures in different types of public investment are complementary across space and over time and examine their redistributive character. We also analyse regional specialisations and the geographical concentration of public investments and complementarily use an exploratory spatial data analysis to examine the extent of clustering of public investment and identify possible patterns in the geography of clusters and hotspots. Although our analysis uses predominantly descriptive tools, our results have confirmatory power, as they reveal a surprisingly random pattern for the spatial and functional allocation of public investment in Greece, thus raising important questions about the rationale for these allocations and, by implication, about the geographical, political and economic dynamics that underlie them. These questions obtain an additional salience in light of the administrative and fiscal reforms pursued currently by the Greek government under the pressure of the country’s sovereign debt crisis

Does Infrastructure Investment Lead to Economic Growth or Economic Fragility? Evidence from China

The prevalent view in the economics literature is that a high level of infrastructure investment is a precursor to economic growth. China is especially held up as a model to emulate. Based on the largest dataset of its kind, this paper punctures the twin myths that, first, infrastructure creates economic value, and, second, China has a distinct advantage in its delivery. Far from being an engine of economic growth, the typical infrastructure investment fails to deliver a positive risk adjusted return. Moreover, China's track record in delivering infrastructure is no better than that of rich democracies. Where investments are debt-financed, overinvesting in unproductive projects results in the buildup of debt, monetary expansion, instability in financial markets, and economic fragility, exactly as we see in China today. We conclude that poorly managed infrastructure investments are a main explanation of surfacing economic and financial problems in China. We predict that, unless China shifts to a lower level of higher-quality infrastructure investments, the country is headed for an infrastructure-led national financial and economic crisis, which is likely also to be a crisis for the international economy. China's infrastructure investment model is not one to follow for other countries but one to avoid

Urban Agglomerations in the Regional Development: Theoretical, Methodological and Applied Aspects

The article focuses on the analysis of the major process of modern socio-economic development, such as the functioning of urban agglomerations. A short background of the economic literature on this phenomenon is given. There are the traditional (the concentration of urban types of activities, the grouping of urban settlements by the intensive production and labour communications) and modern (cluster theories, theories of network society) conceptions. Two methodological principles of studying the agglomeration are emphasized: the principle of the unity of the spatial concentration of economic activity and the principle of compact living of the population. The positive and negative effects of agglomeration in the economic and social spheres are studied. Therefore, it is concluded that the agglomeration is helpful in the case when it brings the agglomerative economy (the positive bene ts from it exceed the additional costs). A methodology for examination the urban agglomeration and its role in the regional development is offered. The approbation of this methodology on the example of Chelyabinsk and Chelyabinsk region has allowed to carry out the comparative analysis of the regional centre and the whole region by the main socio-economic indexes under static and dynamic conditions, to draw the conclusions on a position of the city and the region based on such socio-economic indexes as an average monthly nominal accrued wage, the cost of fixed assets, the investments into fixed capital, new housing supply, a retail turnover, the volume of self-produced shipped goods, the works and services performed in the region. In the study, the analysis of a launching site of the Chelyabinsk agglomeration is carried out. It has revealed the following main characteristics of the core of the agglomeration in Chelyabinsk (structure feature, population, level of centralization of the core) as well as the Chelyabinsk agglomeration in general (coefficient of agglomeration, index of agglomeration, coefficient of the development of the population, growth rates of agglomeration). The analysis of the internal environment of the agglomeration has shown that the industry of the majority of the cities-satellites is unprofitable, the space of the urban agglomeration is very heterogeneous. The research proves that the creation of the agglomeration will allow to solve the problems of the production diversification at the territory, to perform the effective land use, to optimize transport and housing-and-municipal infrastructure

REFORMING THE CAP: AN AGENDA FOR REGIONAL GROWTH?

This paper aims at analysing the recent CAP reform from the perspective of the current general and strategic objectives of the EU as defined by the Lisbon Strategy. A critical appraisal of the CAP impact in terms of regional growth is carried out. Firstly from a strictly conceptual and methodological point of view, then by analysing more in detail how CAP reform (of both Pillar I and II) might have actually affected the role of the CAP in promoting (or hindering) regional growth and, therefore, convergence. Empirical evidence provided by the different available methodologies has progressively emerged in the very last years. Though a conclusive answer on the impact of the reform can not be drawn, it still emerges that the role of CAP design and implementation in affecting regional growth and convergence is usually underestimated and often neglected in the discussions about the future of the CAP. At the same time, however, this role is not univocal and strongly case-specific, as it substantially differs across regions according to their socio-economic structure and how reforms are jointly implemented.Common Agricultural Policy, Regional Growth and Convergence, Lisbon Strategy, Agricultural and Food Policy, Community/Rural/Urban Development, Q180, R110, O410,

What Should EDA Fund? Developing a Model for Pre-Assessment of Economic Development Investments

This paper describes the completion of a “comprehensive study of regionalism” that was conducted by a joint team of economists and economic development specialists for the Economic Development Administration (EDA). The project consisted of two main activities: an examination of the factors associated with economic development success and the creation of a practical interactive tool for EDA project assessment and comparison. Findings from surveys, interviews, and project case studies are discussed in terms of their support for a positive relationship between successful economic development efforts and factors such as leadership and private investment. Also, the authors discuss the creation of a quantitative assessment model utilizing well-known approaches such as economic impact multipliers and cluster theory. The primary contribution of this work to the existing body of EDA-focused research and evaluation literature is introducing a means of using standardized scores, also known as z-scores, to compare and assess economic development projects across both industries and regions.regional economic development, economic impact, assessment model, EDA, z-score

Infrastructure networks and the competitiveness of the economy

This paper aims to examine how technical infrastructure networks may contribute to improving the competitiveness of the Hungarian economy. Consequently, our main question will be to establish how certain networks or sectors can promote competitiveness of the entire economy rather than how they could be more competitive in their own field. In the macroeconomic or regional sense competitiveness is interpreted as the entirety of safeguards and preconditions that provide a long term basis for success in a competitive market environment. The review of the economic, social, institutional and facility preconditions of competitiveness has highlighted that practically every component must be backed by a good system of relations: both strong, balanced internal relations promoting co-operation and external relations to assure outward linkages. Despite the above correlation, it would be a fallacy to assume that infrastructure networks as linking elements in general are factors per se improving competitiveness. In accordance with the level of development of the economy, the key forms of activity and the realistically attainable objectives, different linkages and service needs become key for the development of the economy in different stages