While the long run productivity of federal highway infrastructure spending has been well researched, their short run effects and effects on income inequality. This dissertation explores those under-researched unconventional effects.
In the first chapter, I investigate the effects of federal infrastructure grants on income inequality. I find that grants reduce inequality in both recipient and neighboring states. The reduction is driven by greater income among the bottom three income quintiles. I explore two mechanisms using person level data and find that the reduction in inequality is attributable to higher income for low-skilled workers and workers working in low-skilled industries.
In the second chapter, I investigate the role of implementation lags in the ARRA. I find that the employment effects after six months were nearly twice as high in short lag counties compared to long lag counties. However, these effects quickly fade. I find no evidence of implementation lags impacting employment after one year.
In the third chapter, I examine the effect of the business cycle on completion times of federally financed transportation infrastructure projects. I find that projects that begin construction during periods of economic slack are completed more quickly, suggesting an alternative mechanism for state dependent fiscal multipliers.
| Identifer | oai:union.ndltd.org:uky.edu/oai:uknowledge.uky.edu:economics_etds-1041 |
| Date | 01 January 2019 |
| Creators | Schendstok, Matthijs B. |
| Publisher | UKnowledge |
| Source Sets | University of Kentucky |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | Theses and Dissertations--Economics |
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