Long-term Economic Impacts of USDA Water Infrastructure Investments in Oklahoma

Abstract

One of USDA Rural Development's most popular programs is the funding for public water and sewer infrastructure projects in rural communities. This study reviews the water infrastructure projects funded in the state of Oklahoma between 1990 and 2000 and evaluates their impact on different measures of economic growth over both the short (1-10 years) and long (10-20 years) term. Evaluation techniques include multivariate regression analysis and average treatment effects with incorporation of propensity scores matching technique. Results suggest that while most economic growth measures (population, income levels, and poverty levels) are not impacted by the program, housing values do show a statistically significant increase in communities receiving water infrastructure funding over the long term.