Does money matter for infrastructure outcomes? The effects of public infrastructure finance on state infrastructure quality. Issue 3 (1st March 2017)

• Record Type: Journal Article
• Authors: Chen, Can
• Is Part Of: Journal of public budgeting, accounting & financial management. Volume 29:Issue 3(2017)
• Page Start: 375
• Page End: 408
• Publication Date: 2017-03-01
• Subjects: Finance, Public -- Periodicals; Finance, Public -- Accounting -- Periodicals; Budget -- Periodicals; Budget; Finance, Public; Finance, Public -- Accounting; Periodicals; 336
• DOI: 10.1108/JPBAFM-29-03-2017-B005
• Languages: English
• ISSNs: 1096-3367

Abstract

Abstract: Given the significant amount of public infrastructure spending and the widely expressed concern about the declining quality of the American public infrastructure system, research about the effectiveness of public infrastructure investment is especially timely and crucial. The study extends public service production theory and public choice theory to the public infrastructure field, and develops a realistic and full theoretical model of public highway production by taking state highway efficiency differences into account. The panel fixed-effects method is used to examine the effects of state highway finance on state highway infrastructure quality. This study finds that state highway maintenance spending plays a crucial role in improving state road and bridge quality. Moreover, highway efficiency elements matter for state highway infrastructure quality.