Public works as countercyclical fiscal policy

Georges Vernez

ResearchPublished 1977

Describes research at RAND on assessing the job creation effects of alternative public works investments, and identifies factors that might improve the design of countercyclical public works programs. Some findings: (1) No single countercyclical program can effectively target all regions, industries and groups in the labor force. (2) Public works projects do effectively target industries most affected by recessions--construction and durable goods, but the ability to target a specific region is lower than public service employment and revenue-sharing programs. Also, they do not target certain groups, such as youths and females. The key problems in a countercyclical public works program are reducing legislative lag, and avoiding local bottlenecks in the construction sector. This can be minimized by: (1) Automatic release of funds under prespecified economic conditions. (2) Distributing funds among areas according to availability of construction workers and whether local cycles are leading or lagging a national recession.

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  • Copyright: RAND Corporation
  • Availability: Available
  • Year: 1977
  • Print Format: Paperback
  • Paperback Pages: 15
  • Paperback Price: $20.00
  • Document Number: P-5859

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RAND Style Manual
Vernez, Georges, Public works as countercyclical fiscal policy, RAND Corporation, P-5859, 1977. As of September 4, 2024: https://www.rand.org/pubs/papers/P5859.html
Chicago Manual of Style
Vernez, Georges, Public works as countercyclical fiscal policy. Santa Monica, CA: RAND Corporation, 1977. https://www.rand.org/pubs/papers/P5859.html. Also available in print form.
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