The contribution of publicly provided inputs to states' economies

Teresa Garcia-Milà, Therese J. McGuire*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

280 Scopus citations


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 languageEnglish (US)
Pages (from-to)229-241
Number of pages13
JournalRegional Science and Urban Economics
Issue number2
StatePublished - Jun 1992

ASJC Scopus subject areas

  • Economics and Econometrics
  • Urban Studies


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