Template-Type: ReDIF-Article 1.0
Author-Name: Marco Alderighi
Title: THE DYNAMICS OF DOMESTIC AND INTERNATIONAL INFRASTRUCTURE INVESTMENTS
Abstract: This paper analyses the optimal investment policy in domestic and international infrastructure through a model of competition among countries. The framework provided by Martin
and Rogers [Martin, P. and Rogers, C., 1995, Industrial location and public infrastructure, Journal of International Economics, 39, 335-51.] is here extended to include dynamic aspects. The optimal
investment trajectories are characterized in two situations : first, when coordination among countries is reached and second when countries behave egoistically. Since international
infrastructure produces positive externalities, it emerges that the second situation is sub-optimal.
Volume: 40
Issue: 3
Year: 2013
Handle: RePEc:jte:journl:2013:3:40:2