Methods of Estimating the Economic Impact of Transportation Improvements

This synthesis reviews several strands of relevant literature that aim to assess the basic issue of the economic impact of highways. It begins with a discussion of traditional, project-based economic analysis methods, based on microeconomic foundations and benefit-cost analysis methods. Some attention is paid to the specific topic of induced demand, since this issue presents unique difficulties for microeconomic analysis methods. Then, the discussion turns to regional and macroeconomic methods, including input-output and econometric modeling. The final section summarizes the previous discussion and offers some prospective ideas about evaluating the impacts of transportation improvements.

[1]  David M. Luskin,et al.  Potential gains from more efficient spending on Texas highways , 2008 .

[2]  D. Levinson,et al.  Road Capacity and the Allocation of Time , 2008 .

[3]  F. Martínez.  TOWARDS A LAND-USE AND TRANSPORT INTERACTION FRAMEWORK. IN: HANDBOOK OF TRANSPORT MODELLING , 2007 .

[4]  Daniel J. Graham,et al.  Variable returns to agglomeration and the effect of road traffic congestion , 2007 .

[5]  Robert B. Noland,et al.  Transport Planning and Environmental Assessment: Implications of Induced Travel Effects , 2007 .

[6]  Kaan Ozbay,et al.  Empirical analysis of transportation investment and economic development at state, county and municipality levels , 2006 .

[7]  Joseph Berechman,et al.  Modeling and Analysis of the Link between Accessibility and Employment Growth , 2006 .

[8]  David M Levinson,et al.  Paving New Ground: A Markov Chain Model of the Change in Transportation Networks and Land Use , 2005 .

[9]  D. Levinson,et al.  Access to Destinations , 2005 .

[10]  David M Levinson,et al.  The Transportation Experience: Policy, Planning, and Deployment , 2005 .

[11]  Kara M. Kockelman,et al.  COSTS OF RIGHT-OF-WAY ACQUISITION: METHODS AND MODELS FOR ESTIMATION , 2005 .

[12]  Chad Shirley,et al.  Firm inventory behavior and the returns from highway infrastructure investments , 2004 .

[13]  Ramachandra Karamalaputi,et al.  Induced Supply: A Model of Highway Network Expansion at the Microscopic Level , 2003 .

[14]  Pavithra Parthasarathi,et al.  Induced Demand: A Microscopic Perspective , 2003 .

[15]  R. Cervero,et al.  Induced Travel Demand and Induced Road Investment: A Simultaneous Equation Analysis , 2002 .

[16]  R. Shumway,et al.  Revisiting the notion of induced traffic through a matched-pairs study , 2002 .

[17]  J. Berechman,et al.  Accessibility improvements and local employment: an empirical analysis , 2001 .

[18]  G Weisbrod,et al.  PRODUCTIVITY AND ACCESSIBILITY: BRIDGING PROJECT SPECIFIC AND MACROECONOMIC ANALYSES OF TRANSPORTATION INVESTMENTS , 1998 .

[19]  A. Haughwout.  Aggregate Production Functions, Interregional Equilibrium, and the Measurement of Infrastructure Productivity☆ , 1998 .

[20]  Marlon G. Boarnet,et al.  Spillovers and the Locational Effects of Public Infrastructure , 1998 .

[21]  Sally Cairns,et al.  Evidence on the effects of road capacity reduction on traffic levels , 1998 .

[22]  M. Hansen,et al.  Road supply and traffic in California urban areas , 1997 .

[23]  Marlon G. Boarnet,et al.  INFRASTRUCTURE SERVICES AND THE PRODUCTIVITY OF PUBLIC CAPITAL: THE CASE OF STREETS AND HIGHWAYS , 1997, National Tax Journal.

[24]  P DeCorla-Souza,et al.  USING BENEFIT-COST ANALYSIS TO EVALUATE ACROSS MODES AND DEMAND MANAGEMENT STRATEGIES , 1996 .

[25]  P. Hills.  What is induced traffic? , 1996 .

[26]  F. Martínez,et al.  Access: The transport-land use economic link , 1995 .

[27]  C. Phillip Baumel,et al.  Expanding the Set of Efficiency Gains of a Highway Investment: Conceptual, Methodological and Practical Issues , 1994 .

[28]  H. Mohring,et al.  MAXIMIZING, MEASURING, AND NOT DOUBLE COUNTING TRANSPORTATION-IMPROVEMENT BENEFITS: A PRIMER ON CLOSED- AND OPEN-ECONOMY COST-BENEFIT ANALYSIS. IN: URBAN TRANSPORT , 1993 .

[29]  Robert H. Porter,et al.  The Effect of Public Capital in State-Level Production Functions Reconsidered , 1993 .

[30]  Douglas Holtz-Eakin,et al.  Public-Sector Capital and the Productivity Puzzle , 1992 .

[31]  George I. Treyz,et al.  The REMI Economic-Demographic Forecasting and Simulation Model , 1991 .

[32]  Kevin T. Duffy-Deno,et al.  Public Infrastructure and Regional Economic Development: A Simultaneous Equations Approach , 1991 .

[33]  David J. Forkenbrock,et al.  Economic benefits of a corridor highway investment , 1990 .

[34]  David Alan Aschauer,et al.  IS PUBLIC EXPENDITURE PRODUCTIVE , 1989 .

[35]  Yorgos J. Stephanedes,et al.  HIGHWAY IMPACTS ON REGIONAL EMPLOYMENT , 1987 .

[36]  Yorgos J. Stephanedes,et al.  HIGHWAY EXPENDITURES AND NON-METROPOLITAN EMPLOYMENT , 1986 .

[37]  A. Fishlow.  American Railroads and the Transformation of the Ante-bellum Economy , 1966 .

[38]  Robert W. Fogel,et al.  Railroads and American Economic Growth: Essays in Econometric History. , 1964 .

[39]  D. Luskin,et al.  Employer valuations of employee commuting time : Case study of office tenants in North Dallas, Texas , 2005 .

[40]  Jason Carey,et al.  Impact of Highways on Property Values: Case Study of Superstition Freeway Corridor , 2003 .

[41]  M. Weiss,et al.  Provisional Typology of Highway Economic Development Projects , 2003 .

[42]  Kara M. Kockelman,et al.  Property Values and Highway Expansion: Timing, Size, Location, and Use Effects , 2002 .

[43]  Kara M. Kockelman,et al.  Accessibility Indices: Connection to Residential Land Prices and Location Choices , 2002 .

[44]  Kara M. Kockelman,et al.  THE IMPACTS OF BYPASSES ON SMALL- AND MEDIUM-SIZED COMMUNITIES: AN ECONOMETRIC ANALYSIS , 2002 .

[45]  Eric J. Miller,et al.  Effects of Transportation Infrastructure and Location on Residential Real Estate Values: Application of Spatial Autoregressive Techniques , 2000 .

[46]  P. DeCorla-Souza,et al.  Accounting for Induced Travel in Evaluation of Urban Highway Expansion , 1999 .

[47]  Pierre Vilain,et al.  Estimation of Commodity Inflows to a Substate Region: An Input-Output Based Approach , 1999 .

[48]  Lisa A. Klein,et al.  Induced Traffic and Induced Demand , 1999 .

[49]  M W Babcock,et al.  MEASUREMENT OF ECONOMIC IMPACTS OF HIGHWAY AND BRIDGE CONSTRUCTION , 1998 .

[50]  J. K. Mullen,et al.  HIGHWAY CAPITAL SPILLOVERS AND INTERSTATE MANUFACTURING ACTIVITY. , 1998 .

[51]  P. DeCorla-Souza,et al.  Using STEAM for Benefit-Cost Analysis of Transportation Alternatives , 1998 .

[52]  Glen Weisbrod,et al.  Comparing Approaches for Valuing Economic Development Benefits of Transportation Projects , 1998 .

[53]  E. Gramlich,et al.  Infrastructure Investment: A Review Essay , 1994 .

[54]  E. Mills,et al.  The Misuse of Regional Economic Models , 1993 .

[55]  Yorgos J. Stephanedes,et al.  DISTRIBUTIONAL EFFECTS OF STATE HIGHWAY INVESTMENT ON LOCAL AND REGIONAL DEVELOPMENT , 1990 .

[56]  Alicia Haydock Munnell,et al.  Why has productivity growth declined? Productivity and public investment , 1990 .