Prior research on the impacts of public capital stocks on economic growth has generally employed either national macroeconomic or multi-jurisdictional regional data. This study attempts to contribute to this area of the discipline by utilizing time series data for a single metropolitan economy. To allow for both short-run and long-run effects, an error correction modeling framework is used for the empirical analysis. Because comprehensive public infrastructure stocks are not published for El Paso, Texas, estimates for those variables are calculated using information regarding annual public capital investment data. Estimation results indicate that physical infrastructure investment may disrupt short-run economic growth, but does improve long-run metropolitan economic performance.
Technical Report TX13-1
A revised version of this study is forthcoming in Economic Development Quarterly.