Citation

Crafts N. Oxf Rev Econ Policy 2009; 25(3): 327-343.

Copyright

(Copyright © 2009, Oxford University Press)

DOI

10.1093/oxrep/grp021

PMID

unavailable

Abstract

Theory and evidence on the effects of public investment on growth and productivity are reviewed. It is concluded that, on average, public capital has positive impacts on output and private investment, partly offset by the effects of the taxation needed to finance it. A possible future shortfall in public capital in the UK is highlighted. The paper also reviews the contribution of transport infrastructure to productivity and considers implications for cost-benefit analysis. It is suggested that there is a case for greater UK investment in roads but, ideally, this should be implemented along with an efficient national road-pricing scheme.

Language: en