Public infrastructure and regional economic development: a simultaneous equations approach

A study of how public capital stock impacts regional economic development, which jointly models the effects of local public infrastructure on personal income and the effect of personal income on the allocation of local public outlays.Infrastructure (Economics) ; Regional economics ; Income

Does Size Matter? The Productivity of Government: Expenditures and the Size of States: Evidence from India

Some politicians argue for the splitting and combining of states to increase government productivity, but there is a dearth of empirical evidence on the optimal size of a state. Using data from Indian states, I test a model of the optimal size of the state. I find that size and preference heterogeneity do not significantly affect the productivity of a state government. However, when states are split up, the productivity of the root state's government is negatively affected. This suggests that there may be a readjustment phase after state reorganisation that brings about this negative effect. It is important to consider this effect when redrawing state borders