“…The deterioration of the infrastructure generates its overuse and increasing restrictions in the provision of its services. This scenario affects productivity and expectations of costs, of aggregate demand and of profits, and may stimulate conventions associated with "negative" expectations that depress their elasticities.2 For investment models in the literature, seeAschauer (1989a, b),Calderón and Servén (2009; 2004a, b),Kopp (2018),Briguglio et al, (2019),Greene and Villanueva (1991),Odedokun (1997),Ramirez (2000) Blejer and Khan (1984),Oshikoya (1994),Peltonen et al, (2012),Santos and Pires (2007),Torres and Resende (2015), among others.…”