Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

If you need an accessible version of this item please contact JSTOR User Support

Roads to Prosperity? Assessing the Link between Public Capital and Productivity

John G. Fernald
The American Economic Review
Vol. 89, No. 3 (Jun., 1999), pp. 619-638
Stable URL: http://www.jstor.org/stable/117036
Page Count: 20
  • Get Access
  • Download ($10.00)
  • Cite this Item
If you need an accessible version of this item please contact JSTOR User Support
Roads to Prosperity? Assessing the Link between Public Capital and Productivity
Preview not available

Abstract

Does the positive correlation between infrastructure and productivity reflect causation? If so, in which direction? I find that when growth in roads (the largest component of infrastructure) changes, productivity growth changes disproportionately in U.S. industries with more vehicles. That vehicle-intensive industries benefit more from road-building suggests that roads are productive. At the margin, however, road investments do not appear unusually productive. Intuitively, the interstate system was highly productive, but a second one would not be. Road-building thus explains much of the productivity slowdown through a one-time, unrepeatable productivity boost in the 1950's and 1960's.

Page Thumbnails

  • Thumbnail: Page 
619
    619
  • Thumbnail: Page 
620
    620
  • Thumbnail: Page 
621
    621
  • Thumbnail: Page 
622
    622
  • Thumbnail: Page 
623
    623
  • Thumbnail: Page 
624
    624
  • Thumbnail: Page 
625
    625
  • Thumbnail: Page 
626
    626
  • Thumbnail: Page 
627
    627
  • Thumbnail: Page 
628
    628
  • Thumbnail: Page 
629
    629
  • Thumbnail: Page 
630
    630
  • Thumbnail: Page 
631
    631
  • Thumbnail: Page 
632
    632
  • Thumbnail: Page 
633
    633
  • Thumbnail: Page 
634
    634
  • Thumbnail: Page 
635
    635
  • Thumbnail: Page 
636
    636
  • Thumbnail: Page 
637
    637
  • Thumbnail: Page 
638
    638