The two neighboring states of Wisconsin and Minnesota share a similar economic structure and size; and yet their fortunes have diverged over the past three years. One correlate of Wisconsin’s growth deficit is state and local government spending.
We find that sales and measured productivity rose substantially for firms near the new (high speed rail) stations after the opening. Firms in industries with greater purchased input shares outperformed firms in industries with lower purchased input shares.
So Wisconsin dodged the fate of having higher firm productivity.
The report is authored by Bernard, Moxnes, and Saito.
Update, 10/1 12:26PM Pacific: And here is the IMF’s assessment of the role of infrastructure investment. Not that I expect it to convince all the folks who think we should privatize all roads, airports, harbors, and train service…
From Buoyant Dollar Recovers Its Luster, Underlining Rebound in U.S. Economy in today’s NY Times:
The United States dollar, after one of its most prolonged weak spells ever, has now re-emerged as the preferred currency for global investors. Across trading desks in New York, London and elsewhere, analysts are rushing to raise their dollar forecasts based on the resurgence in the American economy.
Recently Jim highlighted the odd behavior of the various Treasury term premia. Here are some additional thoughts.
First, from “Debt market goes off script” in the WSJ:
Here are some economic indicators for Kansas; they indicate rising GDP but stalling real personal income (through 2014Q1), stagnant employment growth, with manufacturing employment deviating from national trends.
DWD released August employment figures today. Attainment of Governor Walker’s 250,000 net new private sector jobs continues to be unlikely.
That’s a title from an oped by former GW Bush speechwriter and current AEI scholar Marc Thiessen nearly a year ago. We can now evaluate whether in fact the implementation of individual insurance mandate component of the ACA did implode. From “New Data Show Early Progress in Expanding Coverage, with More Gains to Come,” White House blog today: