We specify a regional production function that, in addition to labor and private capital, includes two publicly provided inputs - highways and education. We employ a panel data set consisting of annual observations on the 48 contiguous states from 1969 to 1983 to estimate input elasticity coefficients under a specification that allows for differences over time and across states. We find that both of the publicly provided inputs have a significant and positive effect on output. Our results support the policy conclusion that publicly provided infrastructure is an important element of economic growth.
|Original language||English (US)|
|Number of pages||13|
|Journal||Regional Science and Urban Economics|
|State||Published - Jun 1992|
ASJC Scopus subject areas
- Economics and Econometrics
- Urban Studies