Investment in infrastructure is necessary for a strong, flexible, and growing economy. However, the relationship between public capital and economic growth is not linear. At a certain level, the tax burden associated with financing and maintaining public capital reduces the returns to private...

This brief presents contrasting views on the effects of public infrastructure investment on private sector productivity. Aschauer states that the slower rate of productivity growth since the early 1970s--coupled with an aging population, the declining proportion of workers to the total...

What are the likely economic consequences, particularly on saving, investment, and long-term economic growth, of three alternative uses of budget surpluses: paying down the debt, increasing government spending, and cutting taxes?