Can national infrastructure spending reduce local unemployment? Evidence from an Australian roads program

We examine the effect of a federally-funded local infrastructure spending program on local unemployment rates. To address the likely funding endogeneity problem, we exploit variation in spending due to pork-barreling, and find that higher government expenditure on roads substantially reduces local unemployment.

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Year of publication:	2011
Authors:	Leigh, Andrew ; Neill, Christine
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 113.2011, 2, p. 150-153
Publisher:	Elsevier
Subject:	Fiscal policy \| Unemployment \| Partisanship

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Type of publication:	Article
Classification:	E24 - Employment; Unemployment; Wages ; E62 - Fiscal Policy; Public Expenditures, Investment, and Finance; Taxation ; H30 - Fiscal Policies and Behavior of Economic Agents. General ; H54 - Infrastructures; Other Public Investment and Capital Stock
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010572170