Research

Does public infrastructure affect economic activity? Evidence from the rural interstate highway system

Regional Science and Urban Economics 2000 Amitabh Chandra and Eric Thompson We examine the relationship between large infrastructure spending, of the types implied by interstate highway construction, and the level of economic activity. By collecting historical data on interstate highway construction and economic activity in the United States at the county level we find that highways have a differential impact across industries: certain industries grow as a result of reduced transportation costs; whereas others shrink as economic activity relocates. Additionally, we find that highways affect the spatial allocation of economic activity. They raise the level of economic activity in the counties that they pass directly through, but draw activity away from adjacent counties.

Publication Information
Article Title: Does public infrastructure affect economic activity? Evidence from the rural interstate highway system
Journal: Regional Science and Urban Economics (2000)
30
Author(s): Thompson, Eric
Researcher Information
    
Thompson, Eric
Thompson, Eric
Karl H. Nelson Associate Professor of Economics, Director of the Bureau of Business Research
Expertise:
  • Bureau of Business Research
  • Regional Economics
Economics
CoB 523 AA
P.O. Box 880489
University of Nebraska-Lincoln
Lincoln, NE 68588-0489, USA
Phone: (402) 472-3318
Fax: (402) 472-9700
ethompson2@unl.edu