ABSTRACT
In the 1970s and first half of the 1980s, the net stock of public capital in the US grew at 1.6 per cent, approximately three times lower than the annual growth rate during the previous 20 years. Aschauer (1989) linked this reduction in infrastructure investment to the productivity slowdown in that period, particularly during the first half of the 1980s. Following this main contribution, many other studies have found similar causal relations between infrastructure and economic growth (Munnel, 1990; Deno, 1991; Deno and Eberts, 1991; Eisner, 1991; García-Mila and McGuire, 1992).
