A model for Public Infrastructure Equalization in Transitional Economies

Sophia Levtchenkova () and Jeffrey Petchey ()

International Center for Public Policy Working Paper Series, at AYSPS, GSU from International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University

Abstract: In this paper, a simulation model is constructed that would enable policy-makers in transitional economies to estimate regionally disparate capital needs and direct capital expenditures to improve standards of public capital or services such as education and health. The model allows policy makers to achieve some degree of ‘equalisation in the regional distribution of publicly supplied capital to allow citizens greater equality of access to services, regardless of location. After developing an appropriate input database, the model is applied to South Africa. The results show that South Africa would need to commit about 2 percent of GDP to supplementary public capital expenditures if it is to make substantial inroads into attaining some form of public infrastructure equalisation over time.

Keywords: transitional economies; capital expenditure; PIM; equalisation; infrastructure backlogs; public expenditure (search for similar items in EconPapers)
Pages: 21 pages
Date: 2004-11-01
New Economics Papers: this item is included in nep-cmp, nep-pbe and nep-tra
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ays:ispwps:paper0414

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