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Does fiscal decentralization affect infrastruture quality? an examination of U.S. states Monica Escaleras and Peter T. Calcagno

By: Escaleras, Monica Paulina.
Contributor(s): Calcagno, Peter T.
Material type: ArticleArticlePublisher: 2018Subject(s): DESCENTRALIZACION FISCAL | INVERSIONES EN INFRAESTRUCTURA | ESTADOS UNIDOS | MODELOS ECONOMETRICOSOnline resources: Click here to access online In: Contemporary Economic Policy v. 36, n. 2, April 2018, p. 410-422Summary: A transportation network is vital to an economy. However, the U.S. highway infrastructure suffers from insufficient maintenance creating inefficiencies such as increased travel times and increase in accidents. The means to fund the infrastructure and their maintenance is a point of debate. In this paper, we examine the role of political institutions and decision-making on the quality of highway infrastructure by focusing on the role of fiscal decentralization. Using generalized linear model estimation on state data from 1992 to 2012, we find evidence that fiscal decentralization improves infrastructure quality. These results are robust to the choice of control variables and method of estimation.
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A transportation network is vital to an economy. However, the U.S. highway infrastructure suffers from insufficient maintenance creating inefficiencies such as increased travel times and increase in accidents. The means to fund the infrastructure
and their maintenance is a point of debate. In this paper, we examine the role of political institutions and decision-making on the quality of highway infrastructure by focusing on the role of fiscal decentralization. Using generalized linear model estimation on state data from 1992 to 2012, we find evidence that fiscal decentralization improves infrastructure quality. These results are robust to the choice of control variables and method of estimation.

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