Improving Funding and Management of Surface Transportation Infrastructure

21 Pages Posted: 27 Sep 2018

See all articles by Veronique de Rugy

Veronique de Rugy

George Mason University - Mercatus Center

Tracy Miller

Mercatus Center at George Mason University

Date Written: May 2017

Abstract

Although spending on infrastructure does not, in itself, stimulate the economy, infrastructure investments can contribute to economic growth, since infrastructure is part of the economy’s capital stock. Investments in infrastructure can also benefit the economy by alleviating the problems that poor infrastructure causes. The extent to which infrastructure investment contributes to growth, however, depends on the net benefits of the projects chosen.

This paper focuses on how to manage and pay for investment in, and maintenance of, transportation infrastructure in a way that maximizes the net benefits from its use and contributes to economic growth. In this regard, we conclude that federal spending is not the best approach. Instead, a better path to making needed infrastructure improvements is to reduce the role of the federal government (including the funding and management of projects) and to increase reliance on state and local governments, user fees, and private firms.

Keywords: infrastructure, budget, spending, transportation, highway funding, toll roads

JEL Classification: R40, R41, R42, H54

Suggested Citation

de Rugy, Veronique and Miller, Tracy, Improving Funding and Management of Surface Transportation Infrastructure (May 2017). Mercatus Policy Primer. Available at SSRN: https://ssrn.com/abstract=3256399 or http://dx.doi.org/10.2139/ssrn.3256399

Veronique De Rugy (Contact Author)

George Mason University - Mercatus Center ( email )

3434 Washington Blvd., 4th Floor
Arlington, VA 22201
United States

Tracy Miller

Mercatus Center at George Mason University ( email )

3434 Washington Blvd., 4th Floor
Arlington, VA 22201
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
2
Abstract Views
88
PlumX Metrics
!

Under construction: SSRN citations will be offline until July when we will launch a brand new and improved citations service, check here for more details.

For more information