Cost overruns in infrastructure projects: Evidence and implications

In recent years, there has been a sharp growth in both the magnitude and frequency of major infrastructure investments worldwide. Despite this boom in infrastructure spending, major projects continue to systematically underperform, as demonstrated in numerous empirical studies. In this paper, the author will discuss the factors underlying this growth in public spending, evaluate the empirical evidence on project cost overruns, and discuss the broader macroeconomic implications of this phenomenon.Keywords. Macroeconomic implications, Major infrastructure investments, Growth.JEL. H73, J42, J61, J62, J68, F22, F42