Investments in America's Hometowns: Community Development Issues in Urban Areas and Other Places : Hearing Before the Task Force on Community Development and Natural Resources of the Committee on the Budget, House of Representatives, One Hundred Second Congress, First Session, September 26, 1991, Volume 4

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Page 74 - The powers reserved to the several states will extend to all the objects, which, in the ordinary course of affairs, concern the lives, liberties, and properties of the people: and the internal order, improvement, and prosperity of the state.
Page 42 - The views expressed are those of the authors, and do not necessarily reflect official positions of the Federal Reserve Bank of Boston or the Federal Reserve System.
Page 14 - Alicia H. Munnell, Senior Vice President and Director of Research, Federal Reserve Bank of Boston Robert J.
Page 47 - First, (n all cases the impact of public capital on private sector output and productivity has been positive and statistically significant. This Is really quite amazing, given that so much of public capital spending Is designed to alleviate environmental problems or enhance the quality of life, and therefore contributes little to national output as conventionally measured. Hence, the big news Is that a strong, positive, statistically significant relationship exists between the stock of public capital...
Page 47 - ... shows up in study after study after study. Second, the variation in the estimates shows a systematic and intriguing pattern. To be more specific, the coefficients at each level of government tend to be very similar across studies; the variation occurs as the unit of observation moves from the nation to states to cities. As the geographic focus of the studies narrows, the estimated impact of public capital becomes smaller. The most obvious explanation is that, because of leakages, one cannot capture...
Page 45 - In the production process at the state level. The results indicated that public capital has a significant, positive Impact on output at the state level. In other words, states with more public capital, all else equal, had greater levels of private output. The second exercise looked at the relationship between public and private investment, where two opposing forces are at work. On one hand, public capital enhances the productivity of private capital, raising the rate of return and encouraging more...
Page 46 - Taken together, the results of these three exercises indicate that public capital has a positive impact on private sector output. investment, and employment.
Page 74 - most extensive and important in times of war and danger; those of the State Governments in times of peace and security.
Page 44 - Despite its enormous magnitude and potential significance, the $2 trillion of public capital had been virtually ignored by the economics profession, until the work of David Aschauer in the late 1980s. In his important 1989 article, Aschauer, looking at the behavior of the national economy over time, identified a strung relationship between output per unit of private capital and the stock of public capital.

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