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Subnational U.S. governments retain the primary responsibility of constructing and preserving the public infrastructure that connects communities and businesses, enhances public service delivery, and promotes economic development in their jurisdiction. Drawing from punctuated equilibrium and social vulnerability theories for context, the present study investigates the determinants of state infrastructure spending, specifically roads and highways and transit systems. It utilizes balanced panel data on 50 U.S. states over 17 time periods and fixed-effects regressions with year dummies in its investigation. Evidence shows that state infrastructure spending is influenced by disaster events as well as social vulnerability factors. However, the effects of disasters and social vulnerability factors on state infrastructure spending depend on the infrastructure categories, suggesting that the determinants are more nuanced than extant studies indicate.
Nukpezah et al. (Mon,) studied this question.