NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

National Policy for Regional Development: Historical Evidence from Appalachian Highways

Taylor Jaworski, Carl T. Kitchens

NBER Working Paper No. 22073
Issued in March 2016, Revised in November 2019
NBER Program(s):Program on the Development of the American Economy

How effective are policies aimed at integrating isolated regions? We answer this question in the context of a highway system in one of the poorest regions in the United States. With construction starting in 1965, the Appalachian Development Highway System ultimately consisted of over 2,500 high-grade road miles. We use a simple model of interregional trade to motivate our empirical analysis, which quantifies the relationship between market access and income. We then calibrate the model to evaluate the aggregate impact of the ADHS and compare this with alternative counterfactual proposals. We find that removing the ADHS would have reduced total income by $53.7 billion in the United States with $22 billion of the losses in Appalachian counties. Our findings highlight the potential aggregate benefits of transportation infrastructure policies, but also suggest that leakage outside of the targeted area may be substantial.

download in pdf format
   (1703 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w22073

Published: Taylor Jaworski & Carl T. Kitchens, 2019. "National Policy for Regional Development: Historical Evidence from Appalachian Highways," The Review of Economics and Statistics, vol 101(5), pages 777-790.

Users who downloaded this paper also downloaded* these:
Redding and Rossi-Hansberg w22655 Quantitative Spatial Economics
Hsieh and Moretti w21154 Housing Constraints and Spatial Misallocation
Shapiro and Walker w20879 Why is Pollution from U.S. Manufacturing Declining? The Roles of Environmental Regulation, Productivity, and Trade
Auerbach, Kotlikoff, and Koehler w22032 U.S. Inequality, Fiscal Progressivity, and Work Disincentives: An Intragenerational Accounting
Ashraf, Glaeser, and Ponzetto w21910 Infrastructure, Incentives and Institutions
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us