Highway infrastructure and private output: Evidence from static and dynamic production function models

Piyapong Jiwattanakulpaisarn, Robert Noland, Daniel J. Graham

Research output: Contribution to journalArticle

11 Citations (Scopus)

Abstract

Much of the previous empirical literature that evaluates the relationship between public capital and productivity using a production function approach has not allowed for lagged responses of productivity to public capital. Using panel data for 48 contiguous US states over the period 1984-1997, this article demonstrates the importance of using correctly specified dynamics to examine the contribution of highway capital to state productivity. We find that the imposition of static production function models tends to overestimate the short-run effect of highways while underestimating the long-run effect. More plausible results are found when accounting for dynamic adjustments of state output and these show that both the short-run and long-run effects of highway capital are positive but fairly small, even after including positive productivity spillovers from highways located in other states.

Original languageEnglish (US)
Pages (from-to)347-367
Number of pages21
JournalTransportmetrica
Volume7
Issue number5
DOIs
StatePublished - Sep 1 2011

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production function
Productivity
productivity
infrastructure
evidence

All Science Journal Classification (ASJC) codes

  • Transportation
  • Engineering(all)

Keywords

  • Dynamic panel models
  • Highway infrastructure
  • Production function
  • Productivity
  • Spatial spillovers

Cite this

Jiwattanakulpaisarn, Piyapong ; Noland, Robert ; Graham, Daniel J. / Highway infrastructure and private output : Evidence from static and dynamic production function models. In: Transportmetrica. 2011 ; Vol. 7, No. 5. pp. 347-367.
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Highway infrastructure and private output : Evidence from static and dynamic production function models. / Jiwattanakulpaisarn, Piyapong; Noland, Robert; Graham, Daniel J.

In: Transportmetrica, Vol. 7, No. 5, 01.09.2011, p. 347-367.

Research output: Contribution to journalArticle

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