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Effects of Infrastructure on Regional Economic Performance
US STATES vs METROPOLITAN AREAS
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131 b
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This study explores the relationship of highway §infrastructure and regional economic growth using a §labor market model of net migration. Typical net §migration model is revised adding variables of §demand and supply indicators of highway §infrastructure and tested at the U.S. state- and §metropolitan areas. This study found positive §effects of highway infrastructure on state economic §performance; both, the highway services demand §indicator and the highway supply indicator performed §as expected. Elasticity of net in-migration with §respect to the per capita lanemiles of supply §measure was between 0.129 and 0.454 and the §elasticity with respect to vehicle-miles-traveled §per lanemile of congestion measure was between -§0.511 and -0.015. The effects of the highway §indicators are, however, weak at the MSA-level §analysis, suggesting that highway infrastructure §benefits spill over metro area boundaries and are §experienced at a wider geographic scale.
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