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The Barely Revealed Preference behind Road Investment Priorities

  • Fridstrom, Lasse
  • Elvik, Rune
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    An attempt is made to reveal the preference of decision makers within the regional Norwegian public roads administration. The order of priority assigned to the respective, competing public road investment opportunities within the various countries (provinces) is studied by means of a rank order multinomial logit model. Explanatory variables used include cost, benefit, and a variety of attributes characterizing the individual investment projects. Although statistically significant, cost and benefit appear to be of only marginal importance for the priorities set. More weight is attached to cost than to benefit. Smaller projects are preferred to larger, given the benefit-cost ratio. In general, the models estimated are able to explain only a relatively small share of the priority setting made. Copyright 1997 by Kluwer Academic Publishers

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    Article provided by Springer in its journal Public Choice.

    Volume (Year): 92 (1997)
    Issue (Month): 1-2 (July)
    Pages: 145-68

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    Handle: RePEc:kap:pubcho:v:92:y:1997:i:1-2:p:145-68
    Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=100332

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