A Spatial Computable General Equilibrium Approach for Measuring Multiregional Impacts of Large Scale Transportation Projects

In economically lagging regions, infrastructure, transportation infrastructure in particular, is seen as an essential prerequisite for economic development. Even in industrialized regions, where the existing infrastructure’s performance is deteriorating due to increasing inadequacy to cope with enlarging travel demand or superannuated transportation systems, there is still interest in the effects of new or improved transportation infrastructure. At the same time, governments are concerned with the cost of providing and maintaining infrastructure when there are pressures to reduce public expenditure. This requires governments or planners to give a rigorous explanation about the needs of the infrastructure that, in turn, implies a need for more accurate assessment of the incidence of the wider economic benefits from the infrastructure.

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