By Organization for Economic Cooperation & Development (OECD)
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Additional resources for 16th International Symposium on Theory and Practice in Transport Economics - 50 Years of Transport Research: Experience Gained and Major Challenges Ahead
1. Effects of infrastructure construction The short-term impacts are associated with aggregate demand and are the outcome of public sector decisions on fiscal policy with regard to both public investment policy and the funding of that policy through taxes or public borrowing. ) or at the level of different sectors within the economy. 1. Short-term macroeconomic effects There can be no doubt, as we have already explained earlier, that an increase in public expenditure -- in our particular case public investment -- has an expansionary effect on aggregate demand which gives rise to an increase in output, employment and income, as well as in revenue from the taxes levied on the income generated.
At the same time, it challenges the validity of models based on aggregate supply and predicates a return to Keynesian-type models, founded, as we have seen, on measures aimed at aggregate demand and the use of the public deficit as a means of expanding the economy. The models that have been built to determine the relationship between infrastructure investment and economic development have primarily been aimed at determining, firstly, the macroeconomic and sectoral effects generated during the construction phase and, secondly, the effects at regional level and on competitiveness generated during the phase in which the infrastructure in question is used.
Litan (1995), Financial Regulation in the Global Economy, Brooking Institution, Washington, DC. T. (1995), The Implications of Time-based Competition on International Logistics Strategies, Business Horizons, pp. 39-46. , H. Meersman, E. Van de Voorde, E. Van Hooydonk, A. Verbeke and W. ), Port Competitiveness. , Antwerp. Meersman, H. and E. Van de Voorde (1996), Prognoses van de vraag naar goederenvervoer. Cijfers bij economische groei, modale keuze en vervoerbeleid, Energie en Milieu, pp. 131-136.
16th International Symposium on Theory and Practice in Transport Economics - 50 Years of Transport Research: Experience Gained and Major Challenges Ahead by Organization for Economic Cooperation & Development (OECD)