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Marginal Productivity of Expanding Highway Capacity

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  • Piyapong Jiwattanakulpaisarn
  • Robert B. Noland
  • Daniel J. Graham

Abstract

This paper examines the contribution of highway capacity expansions towards regional economic development in the US. Using data for the forty-eight contiguous US states from 1984 to 2005, the dynamic production function estimates reveal that increases in overall highway capacity in states can have a positive, long-lasting effect on private sector output. However, both short-run and long-run output elasticities of highways are small. The data suggests further investments in highway infrastructure may not produce sizable economic returns. The estimates of the long-term productivity benefits of capacity expansion appear to be even smaller for lane-mile additions of lower functional road categories. © 2012 LSE and the University of Bath

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  • Piyapong Jiwattanakulpaisarn & Robert B. Noland & Daniel J. Graham, 2012. "Marginal Productivity of Expanding Highway Capacity," Journal of Transport Economics and Policy, University of Bath, vol. 46(3), pages 333-347, September.
  • Handle: RePEc:tpe:jtecpo:v:46:y:2012:i:3:p:333-347
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    Cited by:

    1. Michael Iacono & David Levinson, 2012. "Rural Highway Expansion and Economic Development: Impacts on Private Earnings and Employment," Working Papers 000101, University of Minnesota: Nexus Research Group.
    2. Arbués, Pelayo & Baños, José F. & Mayor, Matías, 2015. "The spatial productivity of transportation infrastructure," Transportation Research Part A: Policy and Practice, Elsevier, vol. 75(C), pages 166-177.
    3. repec:eee:retrec:v:63:y:2017:i:c:p:13-26 is not listed on IDEAS

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