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A bigger bang for the public buck

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  • Can Chen

Abstract

Purpose - It is well known that public infrastructure, particularly the transportation infrastructure sector, is notorious for low efficiency, spending waste and corruption. Achieving the efficiency of public infrastructure investment is a crucial element to improve the current deteriorating condition of American transportation infrastructure system. The paper aims to discuss these issues. Design/methodology/approach - This research utilizes an input-oriented, variable return to scale non-parametric data envelopment analysis to estimate the relative cost efficiency of highway infrastructure investment among the 48 American continental states from 1995 to 2009. Findings - The empirical results reveal that there is a large efficiency variation among state highway infrastructure systems. Practical implications - In addition, state governments on average reach 95.8 percent of the efficiency of their best practice peers in terms of providing quality highway infrastructure outcomes.

Suggested Citation

  • Can Chen, 2018. "A bigger bang for the public buck," Journal of Public Budgeting, Accounting & Financial Management, Emerald Group Publishing Limited, vol. 30(3), pages 270-285, September.
    • Handle: RePEc:eme:jpbafm:jpbafm-06-2018-009
    DOI: 10.1108/JPBAFM-06-2018-009
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