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A comparative analysis of funding schemes for public infrastructure spending in Quebec

Dorothee Boccanfuso (), Marcelin Joanis, Patrick Richard and Luc Savard ()

Applied Economics, 2014, vol. 46, issue 22, 2653-2664

Abstract: The economic literature has been investigating the positive relation between public infrastructure spending and the productivity of the private sector since Munnell (1992). We have introduced this relationship into a recursive dynamic computable general equilibrium model of the Quebec economy to investigate various funding schemes to scale up infrastructure spending in the province. We draw our assumptions from Estache et al. (2010) combined with sectoral elasticity parameters. We conduct a comparative analysis where the funding comes from debt alone, and debt with sales tax, income tax and business tax. Our main finding is that the income tax seems to produce the most positive effects and the businesses tax the most negative effects, though differences are small.

Date: 2014
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Related works:
Working Paper: A Comparative Analysis of Funding Schemes for Public Infrastructure Spending in Quebec (2012) Downloads
Working Paper: A Comparative Analysis of Funding Schemes for Public Infrastructure Spending in Quebec (2012) Downloads
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DOI: 10.1080/00036846.2014.909576

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