Is the impact of public investment neutral across the regional income distribution? Evidence from Mexico

Joan Costa-Font and Eduardo Rodriguez-Oreggia

No 113, Working Papers in Economics from Universitat de Barcelona. Espai de Recerca en Economia

Abstract: This paper investigates the contribution of public investment to the reduction of regional inequalities, with a specific application to Mexico. We use quantile regressions to examine the impact of public investment on regional disparities according to the position of each region in the conditional distribution of regional income. Results confirm the hypothesis that regional inequalities can indeed be attributed to the regional distribution of public investment, where the observed pattern shows that public investment mainly helped to reduce regional inequalities between the richest regions.

JEL-codes: C39 H50 R11 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2004
New Economics Papers: this item is included in nep-geo and nep-pbe
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Citations: View citations in EconPapers (6)

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Journal Article: Is the Impact of Public Investment Neutral Across the Regional Income Distribution? Evidence from Mexico (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:bar:bedcje:2004113

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