EVALUATION OF TRANSPORT INFRASTRUCTURE PROJECTS BEYOND COST-BENEFIT ANALYSIS. AN APPLICATION TO BARCELONA'S 4TH RING ROAD. A REPLY

The authors reply to a comment by M. Ponti in this journal (Volume 29, Number 2, June 2002) to their paper, also presented in this journal (Volume 28, Number 3, October 2001). The authors contend that their multi-dimensional approach of combining cost-benefit analysis with other economic impacts from an investment project, despite some limitations, can provide policy makers with useful information for making investment decisions. The authors also clarify that their results regarding the displacement effect on the private sector refer to the impact of public investment rather than public expenditure.