Methodology for Measuring Output, Value Added, and Employment Impacts of State Highway and Bridge Construction Projects

Abstract

The purpose of this paper is to present a methodology to measure some of the economic impacts of state highway programs. State departments of transportation (DOTs) need such a methodology for a variety of reasons, including long-term highway planning as well as advising state policymakers concerning the economic impacts of highway programs. The specific objectives of this study are: (1) describe a procedure to measure the output, value added, and employment impacts of specific types of highway and bridge improvement, and (2) illustrate an application of the model using data from Kansas.

The objectives of the research are accomplished with input-output modeling. An 11-step procedure is described for adjusting the Kansas IMPLAN input-output model so that it is capable of measuring economic impacts for specific types of highway and bridge improvement. The model is illustrated using data from a recently completed study of the Kansas Comprehensive Transportation Program (CTP), which included expenditure of $5.24 billion on state highway system projects. Data from this study are used to demonstrate the calculation of output, value added, and employment impacts for five different highway and bridge improvement categories.