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Can national infrastructure spending reduce local unemployment? Evidence from an Australian roads program

Leigh, Andrew; Neill, Christine


We examine the effect of a federally-funded local infrastructure spending program on local unemployment rates. To address the likely funding endogeneity problem, we exploit variation in spending due to pork-barreling, and find that higher government expenditure on roads substantially reduces local unemployment.

CollectionsANU Research Publications
Date published: 2011
Type: Journal article
Source: Economics Letters
DOI: 10.1016/j.econlet.2011.05.037


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