RT Journal Article
T1 Modeling the Impact of Public Infrastructure investments in the U.S.: A CGE Analysis
A1 Suarez-Cuesta, David
A1 Latorre Muñoz, María De La Concepción
AB This study offers a computable general equilibrium analysis of the $550 billion devoted to new infrastructure investment (new and remodeled physical infrastructure for transportation, information and public services) in the United States under the Infrastructure Investment and Jobs Act, a federal law signed by President Joseph Biden in November 2021. The simulations are based on the state-level distribution of funds and distinguish between the construction phase (short run) and the operational phase (long run). Gross domestic product (GDP) and labor demand react to the government spending stimulus after the first year by growing 0.24% and 0.44%, respectively. The gains derived from this investment plan are higher in the long term once investments increase the country’s capital stock; GDP increases by 1.39% and wages by 3.94%. This paper analyzes the efficiency of the current distribution of funds across sectors, and finds that the current distribution benefits the United States economy more. Even though a slightly higher GDP impact could have been reached (1.42%) if all the funds were devoted to transport services, the price increases would result in lower real wage increases.
YR 2023
FD 2023
LK https://hdl.handle.net/20.500.14352/103854
UL https://hdl.handle.net/20.500.14352/103854
LA eng
NO Suárez-Cuesta, D., Latorre, M.C. Modeling the Impact of Public Infrastructure investments in the U.S.: A CGE Analysis. Int Adv Econ Res 29, 165–176 (2023). https://doi.org/10.1007/s11294-023-09875-w.
NO 2023 Acuerdos transformativos CRUE
DS Docta Complutense
RD 5 abr 2025