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Fueling road spending with federal stimulus

Author

Listed:
  • Sylvain Leduc
  • Daniel J. Wilson

Abstract

Highway spending in the United States between 2008 and 2011 was flat, despite the serious need for improvements and the big boost to state highway funds from the Recovery Act of 2009. A comparison of how much different states received and spent shows that these federal grants actually boosted highway spending substantially. However, this was offset by pressures to reduce state highway spending due to plummeting tax revenues. In fact, analysis suggests national highway spending would have fallen roughly 20% over this period without federal highway grants from the Recovery Act.

Suggested Citation

  • Sylvain Leduc & Daniel J. Wilson, 2014. "Fueling road spending with federal stimulus," FRBSF Economic Letter, Federal Reserve Bank of San Francisco.
    • Handle: RePEc:fip:fedfel:00027
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    File URL: http://www.frbsf.org/economic-research/publications/economic-letter/2014/august/recovery-act-federal-stimulus-highway-spending/el2014-25.pdf
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    Cited by:

    1. Wonchul Kim & Sung Hyo Hong, 2022. "An Empirical Analysis of the Benefits of Opening a Highway in Terms of Changes in Housing Prices," Sustainability, MDPI, vol. 14(9), pages 1-11, May.
    2. Hymel, Kent, 2019. "If you build it, they will drive: Measuring induced demand for vehicle travel in urban areas," Transport Policy, Elsevier, vol. 76(C), pages 57-66.

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