IDEAS home Printed from https://ideas.repec.org/p/tam/wpaper/1081.html
   My bibliography  Save this paper

Measuring the Highway Capital in Finland 1900-2009

Author

Listed:
  • Sakari Uimonen

    (Government Institute for Economic Research (VATT) and School of Management, University of Tampere)

Abstract

In this study, the values of the wealth and productive services capital stocks in Finland between 1900 and 2009 are estimated. Several modifications to the prevailing conventions of measurement are suggested. First, the sudden death (one hoss shay) deterioration of the asset is the justifiable deterioration pattern in this context. Renovation investments that preserve the e±ciency of the asset must explicitly be attached to the fundamental equation determining the asset price but they must not any more be included as separate investments in the estimate. With these modifications the wealth capital stock of highways obtains the value of 43 billion euros in 2009, the "official" figure being only 15 billion euros. Secondly, the competitive market hypothesis in the case of infrastructure investments is questioned. Using a typical cost-benefit rule and parameter values applied in project appraisals to estimate the value of the expected benefits of a typical highway project, the wealth capital stock of highways obtains the value of 170 billion euros in 2009. Thirdly, new road investments have a positive external effect on previous investments in improving the performance of the whole network. Using a spatial accessibility index and its changes to estimate the intensity of the external effects, the wealth capital stock of highways reaches the value of 200 billion euros in 2009.

Suggested Citation

  • Sakari Uimonen, 2010. "Measuring the Highway Capital in Finland 1900-2009," Working Papers 1081, Tampere University, Faculty of Management and Business, Economics.
    • Handle: RePEc:tam:wpaper:1081
    as

    Download full text from publisher

    File URL: http://urn.fi/urn:isbn:978-951-44-8226-7
    File Function: First version, 2010
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    highway capital; measuring capital; accessibility gains;
    All these keywords.

    JEL classification:

    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tam:wpaper:1081. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sami Remes (email available below). General contact details of provider: https://edirc.repec.org/data/khutafi.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.