Hostname: page-component-586b7cd67f-r5fsc Total loading time: 0 Render date: 2024-11-22T07:48:50.109Z Has data issue: false hasContentIssue false
  • English
  • Français

Long-Term Economic Impacts of USDA Water and Sewer Infrastructure Investments in Oklahoma

Published online by Cambridge University Press:  26 January 2015

Ivica Janeski  and
Brian E. Whitacre
Ivica Janeski
Affiliation:
Department of Agricultural Economics, Oklahoma State University, Stillwater, Oklahoma
Brian E. Whitacre
Affiliation:
Department of Agricultural Economics, Oklahoma State University, Stillwater, Oklahoma
Get access Rights & Permissions [Opens in a new window]

Abstract

One of the U.S. Department of Agriculture Rural Development's most popular programs is the funding for public water and sewer infrastructure projects in rural communities. This article reviews the water and sewer infrastructure projects funded in the state of Oklahoma between 1990 and 2000 and evaluates their impact on different measures of economic growth over both the short (one to 10 years) and long (10 to 20 years) term. Evaluation techniques include multivariate regression and average treatment effects. Results suggest that although most economic growth measures (population, income levels, and poverty levels) are not impacted by the program, housing values do show a statistically significant increase in communities receiving water or sewer infrastructure funding over the long term.

Keywords

average treatment effectseconomic growthpublic water infrastructurerural developmentH76O18RllR58
Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 46 , Issue 1 , February 2014 , pp. 21 - 39
Copyright
Copyright © Southern Agricultural Economics Association 2014

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Abadie, A.“Semiparametric Difference-in-Differences Estimators”. The Review of Economic Studies 72(2005): 1–19.CrossRefGoogle Scholar
Aschauer, D.“Is Public Expenditure Productive?” Journal of Monetary Economics 23(1989): 177–200.CrossRefGoogle Scholar
Bagi, S.“Economic Impact of Water/Sewer Facilities on Rural and Urban Communities”. Rural America 17,4(2002): 1–4.Google Scholar
Becker, S.O., and Ichino, A.. “Estimation of Average Treatment Effects Based on Propensity Scores”. The Stata Journal 2(2002):358–377.CrossRefGoogle Scholar
Blanford, D., Boisvert, R., and Davidova, S.. Infrastructure and Rural Development: US and EU Perspectives. The Hague, The Netherlands: The Agricultural Economics Society and the European Association of Agricultural Economists, 2008.Google Scholar
Borcherding, T, and Deacon, R.. “The Demand for the Services of Non-Federal Governments”. The American Economic Review 62(1972): 891–901.Google Scholar
Brown, J., Lambert, D., and Florax, R.. “The Birth, Death, and Persistence of Firms: Creative Destruction and the Spatial Distribution of U.S. Manufacturing Establishments, 2000-2006”. Economic Geography 89(2013):203–226.CrossRefGoogle Scholar
Copeland, C. “Rural Water Supply and Sewer Systems: Background Information”.Congressional Research Service 7-5700. Internet site: www.crs.gov (Accessed June 2010).Google Scholar
Czernich, N., Falck, O., Kretschmer, T., and Woessmann, L.. “Broadband Infrastructure and Economic Growth”. The Economic Journal 191(2011):505–532.CrossRefGoogle Scholar
Dehejia, R.H. “Practical Propensity Score Matching: A Reply to Smith and Todd”. Journal of Econometrics 125,1 (2005):355–364.CrossRefGoogle Scholar
Dehejia, R.H., and Wahba, S.. “Propensity Score Matching Methods for Non-Experimental Causal Studies”. The Review of Economics and Statistics 84,1(2002): 151–161.CrossRefGoogle Scholar
Deno, K. “The Effect of Public Capital on U.S. Manufacturing Activity: 1970 to 1978”. Southern Economic Journal 55,2(1988):400–411.CrossRefGoogle Scholar
Duffy-Deno, K.T., and Eberts, R.W. “Public Infrastructure and Regional Economic Development: A Simultaneous Equations Approach”. Journal of Urban Economics 30(1991):329–343.CrossRefGoogle Scholar
Eberts, R. “Public Infrastructure and Regional Economic Development”. Federal Reserve Bank of Cleveland Economic Review 26,1(1990): 15–27.Google Scholar
Evans, P., and Karras, G.. “Are Government Activities Productive? Evidence from a Panel of U.S. States”. The Review of Economics and Statistics LXXVI, 1(1994): 1–11.CrossRefGoogle Scholar
Faini, R., Annez, P., and Taylor, L.. “Defense Spending, Economic Structure, and Growth: Evidence among Countries and Over Time”. Economic Development and Cultural Change 32,3(1984):487–498.CrossRefGoogle Scholar
Fox, W., and Porca, S.. “Investing in Rural Infrastructure”. International Regional Science Review 24,1(2001): 103–133.CrossRefGoogle Scholar
Gramlich, E. “Infrastructure Investment: A Review Essay”. Journal of Economic Literature 32,3(1994): 1176–1196.Google Scholar
Griliches, Z. “Distributed Lags: A Survey”. Econometrica 35,1(1967):16–49.CrossRefGoogle Scholar
Holtz-Eakin, D. “Public-Sector Capital and the Productivity Puzzle”. The Review of Economics and Statistics 76(1994):12–21.CrossRefGoogle Scholar
Holtz-Eakin, D., and Lovely, M.. “Scale Economies, Returns to Variety, and the Productivity of Public Infrastructure”. Regional Science and Urban Economics 26,2(1996): 105–123.CrossRefGoogle Scholar
Holtz-Eakin, D., and Schwartz, A.. “Infrastructure in a Structural Model of Economic Growth”. Regional Science and Urban Economics 25,2(1995a):131–151.CrossRefGoogle Scholar
Holtz-Eakin, D., and Lovely, M.. “Spatial Productivity Spillovers from Public Infrastructure: Evidence from State Highways”. International Tax and Public Finance 2(1995b): 459–468.CrossRefGoogle Scholar
Imbens, G. “Nonparametric Estimation of Average Treatment Effects under Exogeneity: A Review”. The Review of Economics and Statistics 86(2004):4–29.CrossRefGoogle Scholar
Joskow, L.P“Regulation of Natural Monopolies”. Handbook of Law and Economics (Volume 2). Polinsky, A. and Shavell, S., eds. Cambridge, U.K.: Elsevier, 2007. pp. 1227–1348.Google Scholar
Kandilov, I., and Renkow, M.. “Infrastructure Investment and Rural Economic Development: An Evaluation of USDA's Broadband Loan Program”. Growth and Change 41,2(2010):165–191.CrossRefGoogle Scholar
Lambert, D., Xu, W., and Florax, R.. “Partial Adjustment Analysis of Income and Jobs, and Growth Regimes in the Appalachian Region with Smooth Transition Spatial Process Models”. International Regional Science Review (2012):Epub ahead of print July 5, 2012. doi:10.1177/0160017612447618.CrossRefGoogle Scholar
Lehr, W., Osorio, C., Gillett, S., and Sirbu, M.. “Measuring Broadband's Economic Impact”. Presented at the Thirty-Third Telecommunications Policy (TPRC) Research Conference, Arlington, VA, September 2005.Google Scholar
Pindyck, S.R., and Rubinfield, L.D.. “Microeconomics”. Third edition, Beijing, China: Tsinghua University Press and Press/Prentice-Hall Intl., 1995.Google Scholar
Rodriguez, F. “The Role of Infrastructure Investment in Economic Growth”. Century Foundation Report, New York, NY, 2010.Google Scholar
Shideler, D., Badasyan, N., and Taylor, L.. “The Economic Impact of Broadband Deployment in Kentucky”. Federal Reserve Bank of St. Louis: Regional Economic Development 3,2(2007): 88–118.Google Scholar
Stine, R. “Graphical Interpretation of Variance Inflation Factors”. The American Statistician 49(1995):53–56.Google Scholar
Stogsdill, S. “Tar Creek Cleanup Contract Scrutinized”. Tulsa World April 25, 2012.Google Scholar
United States Census Bureau. “Summary File”. 1990 Census. U.S. Census Bureau, 1990. Internet site: http://ftp2.census.gov (Accessed December 3, 2011).Google Scholar
United States Census Bureau/American Factfinder. “Census 2000 Summary File 1 (SF1) 100% Data”. 2000 Census. U.S. Census Bureau, 2000. Internet site: http://factfinder2.census.gov (Accessed November 27, 2011).Google Scholar
United States Census Bureau/American Factfinder. “Selected Social, Economic, and Housing Characteristics”. 2005–2009 American Community Survey. U.S. Census Bureau's American Community Survey Office, 2009. Internet site: http://factfinder2.census.gov (Accessed December 3, 2011).Google Scholar
Webber, D. “What Does Firm Level Productivity Data Tell Us about Agglomeration and Spillover Effects”?Report to the South West Regional Development Agency. Published on South West Regional Development Agency - UK website, April 2010.Google Scholar