Impacts of Highway Infrastructure Investment Under the American Recovery and Reinvestment Act

Authors

  • Seong-Hoon Cho University of Tennessee
  • Daegoon Lee Washington State University
  • Dayton M. Lambert University of Tennessee
  • Roland K. Roberts University of Tennessee

DOI:

https://doi.org/10.5399/osu/jtrf.55.2.4355

Abstract

This study evaluated the impact on highway demand of highway disbursements under the American Recovery and Reinvestment Act (ARRA). Vehicle miles traveled were used to estimate a highway demand equation employing a spatial Durbin model for the 48 contiguous U.S. states during 1994-2008. Estimates from the equation were used to test the hypothesis that highway disbursements caused different upward shifts in the highway demand curves of states. We estimated $8.2 billion in total net benefits for the 48 states as a result of the $27.2 billion in ARRA highway disbursements, yielding an average net benefit of $0.30 per dollar spent.

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Published

2016-06-01

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Section

Articles