Citation

Discussion Paper Details

Please find the details for DP2336 in an easy to copy and paste format below:

Full Details | Bibliographic Reference

Full Details

Title: A Political Economy Model of Infrastructure Allocation: An Empirical Assessment

Author(s): Olivier Cadot, Lars-Hendrik R�ller and Andreas Stephan

Publication Date: December 1999

Keyword(s): France, Growth, Infrastructure, Lobbying and Political Economy

Programme Area(s): Industrial Organization

Abstract: This paper proposes a simultaneous-equation approach to the estimation of the contribution of transport infrastructure accumulation to regional growth. We model explicitly the political-economy process driving infrastructure investments; in doing so, we eliminate a potential source of bias in production-function estimates and generate testable hypotheses on the forces that shape infrastructure policy. Our empirical findings on a panel of France's regions over 1985-91 suggest that influence activities were, indeed, significant determinants of the cross-regional allocation of transportation infrastructure investments. Moreover, we find little evidence of concern for the maximization of economic returns to infrastructure spending, even after controlling for pork-barrel and when imposing an exogenous preference for convergence in regional productivity levels.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=2336

Bibliographic Reference

Cadot, O, R�ller, L and Stephan, A. 1999. 'A Political Economy Model of Infrastructure Allocation: An Empirical Assessment'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=2336