IDEAS home Printed from
   My bibliography  Save this article

Measuring Efficiency and Effectiveness of Highway Management in Sustainability


  • NakHyeok Choi

    (Community Wellbeing Research Center, Graduate School of Public Administration, Seoul National University, Seoul 08826, Korea)

  • Kyujin Jung

    (Social Disaster & Safety Management Center, College of Liberal Arts, Korea University, Seoul 02841, Korea)


This study analyses efficiency and effectiveness of highway management at the state level in the United States. While the current literature on highway management has contributed to understanding infrastructure budget and finance, the relationship between efficiency and effectiveness measurements has not been sufficiently discussed in the context of sustainability. To fill this gap, this study was systemically designed to test the relationship by controlling the states’ political factors, fiscal capacity, median voter, and economic conditions. Data envelopment and principal component analysis with panel data covering 11-year time waves were used to measure both efficiency and effectiveness. The results of the fixed effects model and the spatial autoregressive panel model show a statistically strong relationship between efficiency and effectiveness which are respectively measured by two analysis approaches.

Suggested Citation

  • NakHyeok Choi & Kyujin Jung, 2017. "Measuring Efficiency and Effectiveness of Highway Management in Sustainability," Sustainability, MDPI, vol. 9(8), pages 1-15, August.
  • Handle: RePEc:gam:jsusta:v:9:y:2017:i:8:p:1347-:d:106591

    Download full text from publisher

    File URL:
    Download Restriction: no

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Karlaftis, Matthew G., 2004. "A DEA approach for evaluating the efficiency and effectiveness of urban transit systems," European Journal of Operational Research, Elsevier, vol. 152(2), pages 354-364, January.
    2. Ulrike Mandl & Adriaan Dierx & Fabienne Ilzkovitz, 2008. "The effectiveness and efficiency of public spending," European Economy - Economic Papers 2008 - 2015 301, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    3. Brueckner, Jan K., 1982. "A test for allocative efficiency in the local public sector," Journal of Public Economics, Elsevier, vol. 19(3), pages 311-331, December.
    4. Banker, Rajiv D. & Janakiraman, Surya & Natarajan, Ram, 2004. "Analysis of trends in technical and allocative efficiency: An application to Texas public school districts," European Journal of Operational Research, Elsevier, vol. 154(2), pages 477-491, April.
    5. Leslie McGranahan, 1999. "State budgets and the business cycle: implications for the federal balanced budgets amendment debate," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 23(Q III), pages 3-17.
    6. Mihaiu, Diana Marieta & Opreana, Alin & Cristescu, Marian Pompiliu, 2010. "Efficiency, Effectiveness and Performance of the Public Sector," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 132-147, December.
    7. Yilin Hou & Daniel Smith, 2010. "Do state balanced budget requirements matter? Testing two explanatory frameworks," Public Choice, Springer, vol. 145(1), pages 57-79, October.
    8. Congleton, Roger D & Bennett, Randall W, 1995. "On the Political Economy of State Highway Expenditures: Some Evidence of the Relative Performance of Alternative Public Choice Models," Public Choice, Springer, vol. 84(1-2), pages 1-24, July.
    9. Alt, James E. & Lowry, Robert C., 1994. "Divided Government, Fiscal Institutions, and Budget Deficits: Evidence from the States," American Political Science Review, Cambridge University Press, vol. 88(4), pages 811-828, December.
    10. Kim Cameron, 1986. "A Study of Organizational Effectiveness and its Predictors," Management Science, INFORMS, vol. 32(1), pages 87-112, January.
    11. Michael L. Walden & Gunce Eryuruk, 2012. "Determinants of Local Highway Spending in N orth C arolina," Growth and Change, Wiley Blackwell, vol. 43(3), pages 462-481, September.
    12. Michael Barrow & Adam Wagstaff, 1989. "Efficiency measurement in the public sector: an appraisal," Fiscal Studies, Institute for Fiscal Studies, vol. 10(1), pages 72-97, February.
    13. Le Grand, Julian, 1991. "The Theory of Government Failure," British Journal of Political Science, Cambridge University Press, vol. 21(4), pages 423-442, October.
    14. H. David Sherman & Joe Zhu, 2006. "Service Productivity Management," Springer Books, Springer, number 978-0-387-33231-4, September.
    15. Taylor Lori L., 1995. "Allocative Inefficiency and Local Government," Journal of Urban Economics, Elsevier, vol. 37(2), pages 201-211, March.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Foster,Vivien & Rana,Anshul & Gorgulu,Nisan, 2022. "Understanding Public Spending Trends for Infrastructure in Developing Countries," Policy Research Working Paper Series 9903, The World Bank.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bongsuk Sung & Myung-Bae Yeom & Hong-Gi Kim, 2017. "Eco-Efficiency of Government Policy and Exports in the Bioenergy Technology Market," Sustainability, MDPI, vol. 9(9), pages 1-18, September.
    2. Alessandra Cepparulo & Gilles Mourre, 2020. "How and How Much? The Growth-Friendliness of Public Spending through the Lens," European Economy - Discussion Papers 132, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    3. Heiko T. Burret & Lars P. Feld, 2014. "A Note on Budget Rules and Fiscal Federalism," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 12(01), pages 03-11, April.
    4. Calkins, Lindsay N. & Ryan, Alexander J. & Zlatoper, Thomas J., 2023. "The Political Economy of Recreational Marijuana Laws in the U.S.: A Spatial Approach," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 53(1), April.
    5. Deller, Steven C. & Maher, Craig, 2005. "Government, Effectiveness, Performance and Local Property Values," Staff Papers 12638, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    6. Siân Mughan & Dallin Overstreet, 2023. "The impact of government form on resource allocation in local government, evidence from municipal court closures," Public Budgeting & Finance, Wiley Blackwell, vol. 43(2), pages 3-26, July.
    7. William B. Hankins & Frank Goetzke & Gary Hoover, 2019. "Partisan Determinants of Federal Highway Grants," The Review of Regional Studies, Southern Regional Science Association, vol. 49(3), pages 389-406.
    8. TINA M. Saeid Mahdavi, 2012. "Bohn’s Test of Fiscal Sustainability of the American State Governments The dramatic fall in state government revenues during the “Great Recession” and the resultant large budget deficits accentuated c," Working Papers 0030, College of Business, University of Texas at San Antonio.
    9. Heiko T. Burret & Lars P. Feld, 2016. "Effects of Fiscal Rules - 85 Years' Experience in Switzerland," CESifo Working Paper Series 6063, CESifo.
    10. repec:ces:ifodic:v:12:y:2014:i:1:p:19108838 is not listed on IDEAS
    11. Joshua Hall & Shree Baba Pokharel, 2017. "Does the Median Voter or Special Interests Determine State Highway Expenditures? Recent Evidence," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 45(1), pages 59-69, March.
    12. Burret, Heiko T. & Feld, Lars P., 2018. "(Un-)intended effects of fiscal rules," European Journal of Political Economy, Elsevier, vol. 52(C), pages 166-191.
    13. Lisa Barrow & Cecilia Elena Rouse, 2000. "Using Market Valuation to Assess the Importance and Efficiency of Public School Spending," Econometric Society World Congress 2000 Contributed Papers 1446, Econometric Society.
    14. Brasington, David M., 2001. "Capitalization and Community Size," Journal of Urban Economics, Elsevier, vol. 50(3), pages 385-395, November.
    15. Jeffrey Swanson & Namhoon Ki, 2020. "When Would a Democratic Governor Increase Social Welfare Funding? The Joint Moderation of a State's Economy and a Governor's Budgetary Authority," Review of Policy Research, Policy Studies Organization, vol. 37(5), pages 634-656, September.
    16. Lukáš Melecký & Michaela Staníčková & Jana Hančlová, 2019. "Nonparametric Approach to Evaluation of Economic and Social Development in the EU28 Member States by DEA Efficiency," JRFM, MDPI, vol. 12(2), pages 1-34, April.
    17. Sounman Hong, 2015. "Fiscal Rules in Recessions," Public Finance Review, , vol. 43(4), pages 505-528, July.
    18. Simona-Gabriela Masca, 2014. "Efficiency of Public Expenditure: Review and Preliminary Results for Romania," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(8), pages 326-345, August.
    19. Heiko T. Burret & Lars P. Feld, 2014. "A Note on Budget Rules and Fiscal Federalism," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 12(1), pages 03-11, 04.
    20. Bates, Laurie J. & Santerre, Rexford E., 2013. "Does regionalization of local public health services influence public spending levels and allocative efficiency?," Regional Science and Urban Economics, Elsevier, vol. 43(2), pages 209-219.
    21. Grossman, Philip J. & Mavros, Panayiotis & Wassmer, Robert W., 1999. "Public Sector Technical Inefficiency in Large U.S. Cities," Journal of Urban Economics, Elsevier, vol. 46(2), pages 278-299, September.


    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:gam:jsusta:v:9:y:2017:i:8:p:1347-:d:106591. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: MDPI Indexing Manager (email available below). General contact details of provider: .

    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.