The Gains to American Business from Investments in Transportation Infrastructure

Abstract

Transportation congestion in the U.S. has made it more difficult for companies to outsource critical components of their manufacturing process, which is a key ingredient to improve productivity. We estimate that the productivity losses resulting from congestion cost the U.S. economy $500 billion in lost output from 2009-2015 and reduced employment by 350,000.

Keywords: congestion, transit, productivity

JEL Classification: L60, L92