New England Economic Review 

About: New England Economic Review is an academic journal. The journal publishes majorly in the area(s): Monetary policy & Monetary base. It has an ISSN identifier of 0028-4726. Over the lifetime, 373 publications have been published receiving 10498 citations.

How Does Public Infrastructure Affect Regional Economic Performance

Abstract: This paper offers one more brush stroke to the emerging picture of the relationship between public capital investment and private economic activity It does this by exploring the impact of public capital on output, employment growth, and private investment at the state and regional level The paper consists of four parts Since no comprehensive measures of public or private capital are available at the state level, the first section explains the construction of such data and describes the distribution of these wealth measures by state and region The second section uses these data to estimate an aggregate production function, in order to see whether the positive relationship between output and public capital, which has been documented at the national level, holds up for individual states and regions The third section moves from the steady state to the adjustment process and explores the relationship between public investment and private investment, attempting to determine the direction and magnitude of the effect Finally, the fourth section introduces the public capital data into a firm location model in order to see whether variations in public capital by state have had any impact on state-by-state employment growth The conclusion is that those states that have invested more in infrastructure tend to have greater output, more private investment, and more employment growth

Why has productivity growth declined? Productivity and public investment

Abstract: The decline in United States productivity has been widely identified as one of the major economic problems facing the nation. This concern is understandable; productivity growth is the major determinant of the future standard of living. Economists have gone to great lengths to try to identify the reasons for the slowdown, and David Aschauer recently introduced the notion that the stock of public infrastructure, as well as the stock of private capital, may be a key to explaining changes in output from the private sector. ; This study builds upon Aschauer’s insight and explores whether changes in the amount of public capital, combined with the growth of private capital and labor, can explain most of the slowdown. The author concludes that the main causes of the productivity slowdown could be behind us, as long as public infrastructure receives badly needed attention.

Prices of Single Family Homes Since 1970: New Indexes for Four Cities

Abstract: This paper uses data on nearly a million homes sold in four metropolitan areas -- Atlanta, Chicago, Dallas and San Francisco -- to construct quarterly indexes of existing home prices between 1970 and 1986. We propose and apply a new method of constructing such indexes which we call the weighted repeat sales method (WRS). We believe the results give an accurate picture of the actual rate of appreciation in home prices in the four cities. The paper explains the construction of the index, discusses the results and compares them with the National Association of Realtors data on the median price of existing single family homes for the period 1981 - 1986.

Taxation and Economic Development : The State of the Economic Literature *

Abstract: Periodically, the World Bank relates economic performance in developing countries to the level of taxation and finds that countries with lower marginal tax rates have higher economic growth. The chapter summarizes the empirical results on taxation for studies examining various types of investments. It focuses on some additional considerations of concern to policy makers. Investment decisions were rarely examined, and only a few studies used income as a dependent variable. Indicators of market size, such as population and per capita income, are generally included to represent local demand. Researchers using the representative tax approach should consider using a wider array of tax and expenditure variables in their models. Fiscal reform should move toward more efficient tax systems and expenditure accountability. As a result of federal reform, new responsibilities for welfare spending represent fiscal challenges for the states; state welfare expenditures will likely increase, possibly leading to more variations in taxes among states.

Implications of the Globalization of the Banking Sector: The Latin American Experience

Abstract: Foreign entry into domestic banking markets remains a contentious issue. Whether privatizing a state bank in Brazil or selling a failed bank in Japan, the proposed sale of a large domestic financial institution, possibly to a foreign acquirer, frequently results in a major controversy. Many Asian countries have yet to experience major foreign penetration of domestic banking markets, while Latin American countries have privatized many of their banks and have encouraged foreign banks to enter their domestic markets. ; Because many Latin American countries opened their markets during the 1990s, and because they have experienced exchange rate and banking crises as well as severe fluctuations in their macroeconomies over this period, Latin American countries provide a good laboratory for understanding the effects of foreign bank penetration. The authors examine the legal and economic conditions that have affected foreign bank penetration in Argentina, Brazil, and Mexico and review how foreign banks have reacted to recent crises affecting these countries. They find that foreign banks viewed the economic problems as providing opportunities to expand, either by acquisition or by internal growth of existing subsidiaries. The same was not true for offshore lending, however.