and Reinvestment Act of 2009, about two-thirds came from increased federal government spending, with the Department of Transportation receiving US$ 48 billion.<sup>4</sup> Chi and Baek (2016) document the bidirectional relationship between transport infrastructure and GDP for the period 1960-2012. Their findings suggest that expanding transport infrastructure improves aggregate economic output, and enhanced economic output increases public investment in transport infrastructure in the period. However, the magnitude of the impact of transport infrastructure (0.55) on GDP is smaller than that of non-transport public infrastructure (1.02), implying that non-transport infrastructure investment is a more effective long-term fiscal stimulus than expanding transport infrastructure.

Pereira (2000), based on the US highway spending data for the period between 1956 and 1997, finds a long term multiplier of 1.97 for investment in transportation infrastructure (the lowest across different types of infrastructure investments) well below 4.5, the long run multiplier for total public investment. This finding implies a 3.4 percent rate of return on public investment in transportation infrastructure. Similarly, Leduc and Wilson (2012) estimate 2.7 and 6.2 for the short- and long-run multiplier for the period 1993-2010, while Perotti (2004) finds 1.47 in the short-run and 0.37 in the long-run for the period 1960-2001.

Turning to the energy sector, the report of Blyth _et al._ (2014) surveys the literature on the employment effects of selected policies and note that renewable energy has a higher jobs multiplier in the short run, while it requires less labor for operation and maintenance in the long-run. Comings _et al._ (2014) show that for each megawatt of renewable energy capacity added, photovoltaic projects would add 5 to 9 jobs depending on the size of the project. The contribution of wind projects, on the other hand, is around 1.5 jobs for each megawatt of capacity added.

Broadband infrastructure has been identified as an important area of public investment during an economic downturn in several studies. Due to the scope for user-funded private finance in the telecommunications sector, broadband investment tends to make much smaller demands on public expenditure. Spending initiatives on next-generation telecommunications networks at a time when labor market conditions are particularly weak can help preserve jobs and head off a potential burden on social safety nets. Bringing forward longer-term aggregate spillover effects of broadband can improve the productivity of the entire economy and is consistent with enhancing long-run growth and development. Public support also "crowds in" private investment when access to private financing is decreasing and more expensive.

Investing in broadband and next-generation networks, as a counter-cyclical tool, creates jobs and provides the foundation for economic recovery and long-term sustainable growth (Qiang, 2010). IT infrastructure projects create more jobs than traditional infrastructure investments, in part because of the network multiplier, they also create better jobs in terms of higher skill and higher pay. An additional $10 billion broadband investment would create about 64,000 direct jobs in telecommunications and 116,000 jobs (multiplier of 3.60) in related industries (Atkinson, 2009). Crandall _et al._ (2003) estimate the employment impact of a $63.6 billion investment in broadband deployment aimed at increasing household adoption from 60 percent to 95 percent. They find 140,000 jobs (a multiplier of 2.17) are created per year over ten years.

Jobs in the communications sector in the US economy have an employment multiplier of 2.52 (Bivens, 2003). This indicates that the 50,000 service jobs created by a $10 billion broadband stimulus package create an additional 125,500 jobs. The multiplier for manufacturing jobs is 2.91. Hence, the 13,800 communications/computer equipment manufacturing jobs created to support an additional 40,000 indirect and induced jobs. Crandall _et al._ (2007) find that for every 1 percentage point increase achieved in

> 4 Similarly, Japan initiated a series of stimulus packages with a significant emphasis on spending for public work (among which spending on roads figured prominently) during the stock market collapse in 1989 (Leduc & Wilson, 2014).

15