Cochrane, W., Grimes, A., McCann, P. & Poot, J.(2010). The spatial impact of local infrastructural investment in New Zealand. Paper presented for the NZAE Annual Conference, 30 June – 2 July 2010, University of Auckland Business.
Abstract
In this paper we estimate the impact of local authority infrastructure spending in New Zealand using spatial econometric modeling, with the infrastructure spending itself endogenously determined. Utilizing data from the New Zealand Census and Local Authorities Finance data (1991-2008), aggregated to functional labor 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.
Rights
This article has been presented for the NZAE Annual Conference, 30 June – 2 July 2010, University of Auckland Business. Used with permission.
