Abstract The purpose of this paper is to identify the channels between the public expenditure in core infrastructure and private investment. Profitability and lack of financial constraints considered as the major effects for corporate investment. For this purpose a large panel data of US firms as well as the economic results of the majority of the states. The results show that the infrastructure affect the costs and the revenues of the firms and as a result their profitability. The level of this affect depends on the state and economic sector each firm belongs to. 1. Introduction Public expenditure is essential for the sound function of the economy. For all the countries around the world the dominant questions are how much to spend and of course where it would be more effective for the common wealth. As we can understand the literature around this subject is plentiful. The first published work was by Aschauer (1989), in which a strong positive relationship between public capital and gross domestic product of the U.S. economy was revealed. In favor of these findings other researchers as Munnel (1990) and Morrison and Schwartz (1996) find evidence of positive effect in economic activity. During this period other researchers questioned the plausibility of Aschauer’s findings due to the econometric issues that aroused. Stationary time series, heterogeneity and endogeneity in the model made it vulnerable in criticism. Researchers as Holtz-Eakin (1994), Evans and Karras (1994) and Baltagi and Pinnoi (1995) proved that after the removal of the econometric issues the relationship between public expenditure and output disappears. Of course the importance of infrastructure could not be questioned as public health and natio... ... middle of paper ... ...l markets public infrastructure affects corporate investment firstly through revenues and costs. For instance a new port close to the firm’s plant can reduce the price of input materials and as a result to reduce the variable cost of the firm. On the other hand the reduced variable cost leads to reduced price of final goods. Lower revenues may have exactly the opposite result on the firms’ investment. Which of these two effects overcome the other depends on the profit function of each firm. The price of intermediate and final products depends on public infrastructure. p_(i,t)^NF=p^NF (〖PI〗_(r,t)^((r)) ) And p_(i,t)^F=p^F (〖PI〗_(r,t)^((r)) ) Where PI is the public infrastructure in r,(i=1,…,R) state at time t,(t=1,…,T). The price of the intermediate goods p_(i,t)^NF, with i,(i=1,…,N) representing each firm and t, the time and p_(i,t)^F, the price of final goods.
very wide range of aspects of the built and social environments. Urban development process is a highly complicated process containing various phases. As a main core of the process, urban design gives numbers of proposed plans that are called alternatives. It is worthy to mention that the decision making concerning differentiating between these alternatives is the most crucial phase of urban development process; as accordingly the adaptation and implantation of urban plans can take place. Urban projects
discipline which can make focusing on the techniques, practical application of?marketing?orientation and methods inside enterprises in the management of a firm's marketing activities and resources. The brand audit investigates the return on existing investments, trends in a business? net profits and its established economic value. It determines the business? entire financial strength and assesses a business? image and reputation with its customers. It determines how is perceived as an industry leader in