The central policy objective of a national infrastructure bank is
to increase investment in infrastructure. Greater investment is
desired because high-quality, well maintained infrastructure is
believed to increase private-sector productivity and improve public
health and welfare. The magnitude of the increased productivity,
however, is not settled, as empirical analysis does not always
support the conjecture that greater infrastructure investment
uniformly generates productivity gains. The type of infrastructure
and the type of investment are critical elements in such an
assessment. This book provides an overview of the infrastructure
bank concept and some examples of existing infrastructure financing
mechanisms. Discussed also are select legislative proposals for
infrastructure banks, and the federal role in financing these
proposals.
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