Marginal productivity of expanding highway capacity

Piyapong Jiwattanakulpaisarn, Robert B. Noland, Daniel J. Graham

Research output: Contribution to journalArticlepeer-review

23 Scopus citations

Abstract

This paper examines the contribution of highway capacity expansions towards regional economic development in the US. Using data for the forty-eight contiguous US states from 1984 to 2005, the dynamic production function estimates reveal that increases in overall highway capacity in states can have a positive, long-lasting effect on private sector output. However, both short-run and long-run output elasticities of highways are small. The data suggests further investments in highway infrastructure may not produce sizable economic returns. The estimates of the long-term productivity benefits of capacity expansion appear to be even smaller for lane-mile additions of lower functional road categories.

Original languageEnglish (US)
Pages (from-to)333-347
Number of pages15
JournalJournal of Transport Economics and Policy
Volume46
Issue number3
StatePublished - Sep 2012

All Science Journal Classification (ASJC) codes

  • Transportation
  • Economics and Econometrics
  • Management, Monitoring, Policy and Law

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