Infrastructure Spending as Fiscal Stimulus: Assessing the Evidence

2012-15 | February 1, 2016

Transportation spending often plays a prominent role in government efforts to stimulate the economy during downturns. Yet, despite the frequent use of transportation spending as a form of fiscal stimulus, there is little known about its short- or medium-run effectiveness. Does it translate quickly into higher employment and economic activity or does it impact the economy only slowly over time? This paper reviews the empirical findings in the literature for the United States and other developed economies and compares the effects of transportation spending to those of other types of government spending.

Article Citation

Wilson, Daniel J., and Sylvain Leduc. 2012. “Infrastructure Spending as Fiscal Stimulus: Assessing the Evidence,” Federal Reserve Bank of San Francisco Working Paper 2012-15. Available at https://doi.org/10.24148/wp2012-15

About the Authors
Sylvain Leduc
Sylvain Leduc is executive vice president and director of Economic Research at the Federal Reserve Bank of San Francisco. Learn more about Sylvain Leduc
Daniel Wilson
Daniel Wilson is a vice president in the Economic Research Department of the Federal Reserve Bank of San Francisco. Learn more about Daniel Wilson