Optimal municipal investment in boomtowns An empirical analysis |
| |
Authors: | Ronald G Cummings William D Schulze Arthur F Mehr |
| |
Institution: | 1. Department of Economics, University of New Mexico, Albuquerque, New Mexico, 87131, USA;2. Department of Economics, University of Southern California, Los Angeles, California 90007, USA |
| |
Abstract: | The primary concern of this paper is the use of wage-infrastructure trade-offs as a measure for the social benefits of municipal infrastructure in boomtowns. A regression based on pooled cross sectional and time series data for 26 towns in the Rocky Moutain region suggests that individuals will “trade off” a 1% increase in per capita stocks of municipal infrastructure for a 0.035% decline in wages. These results are then used to calculate “optimal” levels of infrastructure investment for an example boomtown. |
| |
Keywords: | |
本文献已被 ScienceDirect 等数据库收录! |
|