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An Application of the Integrated Transport Network-Multi-regional CGE Model An Impact Analysis of Government-Financed Highway Projects

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  • Euijune Kim
  • Hong Sok Kim
  • Geoffrey J. D. Hewings

Abstract

This paper analyses the impacts of highway development with different financing strategies. We examine two ways in which the government can finance highway development projects: it can (a) use current tax system, or (b) impose earmarked taxes. Our model is composed of a transport network model and a multi-regional Computable General Equilibrium model. The model specifies the behaviours of sixteen producers, four regional households, four regional governments, a central government, and the rest of the world. The results indicate that imposing regional earmarked taxes has a greater effect on income growth and the reduction of regional income inequality than does the current tax system. © 2011 LSE and the University of Bath

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Bibliographic Info

Article provided by London School of Economics and University of Bath in its journal Journal of Transport Economics and Policy (JTEP).

Volume (Year): 45 (2011)
Issue (Month): 2 (May)
Pages: 223-245

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Handle: RePEc:tpe:jtecpo:v:45:y:2011:i:2:p:223-245

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Web page: http://www.bath.ac.uk/e-journals/jtep

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