Review of Methods for Estimating the Economic Impact of Transportation Improvements
AbstractTransportation analysts and the public decision-makers they support are confronted with a broad range of analytical tools for estimating the economic impacts of improvements to trans- portation networks. Many of the available models operate at different scales and have distinctly different structures, making them more or less appropriate for analyzing the impacts of differ- ent types of projects. Here, we review several of the economic methods and models that have been developed for analyzing the impact of transportation improvements, giving special atten- tion to types of projects that add highway capacity in urban areas. We review project-based methods, including beneÞt-cost analysis and several analytical software tools developed by the Federal Highway Administration (FHWA) for economic analysis of transportation investment. We then move on to aggregate and disaggregate-level econometric methods, including regional economic models, hedonic price functions, production functions and cliometric analyses. We also devote some attention to the role of induced demand in economic evaluation, since it is of- ten one of the most uncertain and confounding factors faced by those charged with conducting economic evaluation of transportation projects.
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Bibliographic InfoPaper provided by University of Minnesota: Nexus Research Group in its series Working Papers with number 000041.
Date of creation: 2008
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Publication status: Published in working paper
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Economic Impact; Benefit-Cost Analysis;
Find related papers by JEL classification:
- R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion
- R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-08-14 (All new papers)
- NEP-GEO-2008-08-14 (Economic Geography)
- NEP-PPM-2008-08-14 (Project, Program & Portfolio Management)
- NEP-URE-2008-08-14 (Urban & Real Estate Economics)
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