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Explaining the Distribution of State Funds for National Road Investments between Counties in Norway: Engineering Standards or Vote Trading?


  • Elvik, Rune


Road investment planning in Norway is officially based on cost-benefit analyses, but the results of such analyses have been shown to have little impact on policy. This paper analyses the distribution of state investment funds for national roads between counties in Norway, trying to find a rational choice explanation of the departure of road investment policy from cost-benefit considerations. Three models are proposed to explain the distribution of investment funds between counties: (1) the highway sufficiency rating model, (2) the net economic benefit model and (3) the vote trading model. Analyses for 1990-93 and 1994-97 investment planning terms support the highway sufficiency rating model and the vote trading model. The net economic benefit model is not supported. The highway sufficiency rating model and the vote trading model are highly correlated, making their relative explanatory contributions impossible to identify. Copyright 1995 by Kluwer Academic Publishers

Suggested Citation

  • Elvik, Rune, 1995. "Explaining the Distribution of State Funds for National Road Investments between Counties in Norway: Engineering Standards or Vote Trading?," Public Choice, Springer, vol. 85(3-4), pages 371-388, December.
  • Handle: RePEc:kap:pubcho:v:85:y:1995:i:3-4:p:371-88

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    References listed on IDEAS

    1. Timothy Besley & Anne Case, 2003. "Political Institutions and Policy Choices: Evidence from the United States," Journal of Economic Literature, American Economic Association, vol. 41(1), pages 7-73, March.
    2. Edward L. Glaeser & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2004. "Do Institutions Cause Growth?," Journal of Economic Growth, Springer, vol. 9(3), pages 271-303, September.
    3. Acemoglu, Daron & Johnson, Simon & Robinson, James A., 2005. "Institutions as a Fundamental Cause of Long-Run Growth," Handbook of Economic Growth,in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 6, pages 385-472 Elsevier.
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    Cited by:

    1. Elvik, Rune, 2013. "Paradoxes of rationality in road safety policy," Research in Transportation Economics, Elsevier, vol. 43(1), pages 62-70.
    2. GINSBURGH, Victor & NOURY, Abdul, 2005. "Cultural voting : The Eurovision Song Contest," CORE Discussion Papers 2005006, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).

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