Explaining Gaps In Infrastructure Investment By Municipal Governments In Australia

Author(s)
Simmons, Phil
Dollery, Brian
Publication Date
2023
Abstract
<p>Shortfalls in infrastructure expenditure represent a ubiquitous problem in all Australian local government systems as well as in many other countries. In this paper, we use an evolutionary model to describe how local government investment decisions are made. We demonstrate that fear of reputational damage among elected councilors could cause herding behavior resulting in convergent and overly cautious investment behavior by councils. Under these conditions, divergent viewpoints amongst council members are discouraged and local government may become moribund in its decision-making. We show how this may result in "gaps" in infrastructure investment.</p>
Citation
The Singapore Economic Review, 68(2), p. 457-466
ISSN
1793-6837
0217-5908
Link
Publisher
World Scientific Publishing Co Pte Ltd
Title
Explaining Gaps In Infrastructure Investment By Municipal Governments In Australia
Type of document
Journal Article
Entity Type
Publication

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