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Subbotin, A. Borisov, V. Dolcetta, I. Feichtinger, G. THP proposals and research introduce innovative, evidence-based economic policy options into the national discourse. This op-ed originally appeared in Real Clear Markets. Terms and Conditions.
Construction of Nonlinear Stabilizer for Trajectories of Economic Growth
Papers Papers THP collaborates with leading experts to produce evidence-based policy proposals that foster prosperity through broad-based, sustainable economic growth. Charts THP charts, maps, and tables highlight economic policy challenges through dynamic interactive features. Charts by Type Charts Interactives. Topics THP proposals and research introduce innovative, evidence-based economic policy options into the national discourse. Jun 28, Stacy A.
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Anderson Communications Manager. Ryan Nunn Policy Director. Jay Shambaugh Director. Physical infrastructure underlies all economic activity, allowing consumers, workers, and firms to coordinate to mutual advantage. Getting infrastructure decisions right is a core part of economic policy, and infrastructure has been a constant topic of conversation in Washington, D.
As policymakers consider new directions for infrastructure policy, they should have in mind the following questions: when infrastructure should be built, what type of infrastructure is needed, and how to choose and fund infrastructure projects.
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For example, if infrastructure investments were better timed, they could help to minimize the damage and duration of a recession by working as effective fiscal stimulus. In the new Hamilton Project book, Recession Ready: Fiscal Policies to Stabilize the American Economy , economist Andrew Haughwout proposes an automatic infrastructure investment program that would use federal funds and local expertise to increase transportation spending during an economic downturn.
This proposal would also incentivize states to develop a catalog of construction projects that the federal government would fund as soon as a recession begins.
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These projects could include improvements to highways, bridges, ports, and bus and rail transit, among other projects. Regardless of the timing of infrastructure spending, efficient selection of infrastructure projects is vital. When local knowledge is brought to bear, interjurisdictional spillovers are taken into account, and cost-benefit analysis is applied, the likelihood of efficient selection is significantly increased.
This, in turn, allows infrastructure projects to be as effective as possible in facilitating economic growth and other social objectives, from public health challenges to climate risk. The lifespan of infrastructure projects can extend across generations, and choices we make today will affect where people live, how they travel, and how resilient our economy is to a changing climate.
In a Hamilton Project proposal , economist Matthew Kahn describes infrastructure investments that would protect urban places and populations by making them more resilient to climate change and environmental threats, from severe storms to extreme heat.