Template-Type: ReDIF-Paper 1.0
Author-Name: William Cochrane
Author-X-Name-First: William	
Author-X-Name-Last: Cochrane
Author-Email: billc@waikato.ac.nz
Author-Workplace-Name: University of Waikato
Author-Name:  Arthur Grimes
Author-X-Name-First: Arthur
Author-X-Name-Last: Grimes
Author-Email: arthur.grimes@motu.org.nz
Author-Workplace-Name: Motu Economic and Public Policy Research; and University of Waikato
Author-Name:  Phillip McCann
Author-X-Name-First: Phillip
Author-X-Name-Last: McCann
Author-Email: p.mccann@rug.nl
Author-Workplace-Name: University of Groningen
Author-Name:  Jacques Poot
Author-X-Name-First: Jacques
Author-X-Name-Last: Poot
Author-Email: jpoot@waikato.ac.nz
Author-Workplace-Name: University of Waikato
Title: The Spatial Impact of Local Infrastructural Investment in New Zealand
Abstract:  In this paper we estimate the impact of local authority infrastructure spending in New Zealand using spatial econometric modelling, with the infrastructure spending itself endogenously determined. Utilizing data from the New Zealand Census and Local Authorities Finance data (1991-2008), aggregated to functional labour market areas, we formulate a simultaneous equations growth model of real income, population, land rent and public infrastructure investment.  Estimation is conducted using a spatial 3SLS procedure.  We find that an increase in local infrastructure spending increases population growth, real income and land values, but is itself endogenous and spatially correlated.
Length: 38 Pages
Creation-Date:  2010-10
File-URL: https://motu-www.motu.org.nz/wpapers/10_12.pdf
Number: 10_12
Classification-JEL: H54, J21, R12
Keywords: local infrastructure, economic growth, migration, land value, spatial spillover
Handle: RePEc:mtu:wpaper:10_12