ECONOMIC MODELS AS A BASIS FOR DECISIONS IN PMS AND WLC MODELS

Income derived from taxes should be used in the most effective way. In order to be able to compare the advantages in different uses of this income, many countries try to perform cost/benefit analyses. It is important to recognise the different underlying premises when choosing economic models for various purposes. The model ultimately chosen should provide information on the costs and benefits to society, which can be used when comparing different sectors. This comparison leads to important investment decisions in the public sector. The optimisation of costs and benefits within an administration have another background, and therefore require other economic models for this purpose. When financing a ministry or administration, funds are available through at least four different ways: (1) Through a budget, where costs are debited against the total governmental appropriation. The money in the budget can be used up to a certain limit and the administration is not permitted to borrow or save any money. No interest is paid on money granted through a budget; (2) Through direct payment from the government. The money is paid to the administration either once a year, or on several occasions throughout the year and the administration can borrow or save money, with interest; (3) Through borrowed money, on which interest must be paid; and (4) Through income from road users. The administration or company is free to borrow or save money, with interest. In order to optimise the funds invested in road capital. the economic model used must be as similar to reality as possible. If the economic model does not reflect the real background, the recommendations for decisions will be wrong, which in turn will result in erroneous decisions. For the covering abstract see ITRD E108018.

• Corporate Authors:

  DUTCH-HUNGARIAN ORGANIZER AND CONSULTING LTD

  SZILAGYI U 3
  BUDAPEST,   Hungary  H-1081
• Authors:
  • Huvstig, A
• Conference:
  • FIRST EUROPEAN PAVEMENT MANAGEMENT SYSTEMS CONFERENCE - PROCEEDINGS AND FINAL PROGRAM, BOOK OF ABSTRACTS
  • Location: Budapest , Hungary
  • Date: 2000-9-24 to 2000-9-27
• Publication Date: 2000-9

Language

• English

Subject/Index Terms

• TRT Terms: Costs; Mathematical models; Pavement management systems
• ITRD Terms: 224: Cost; 6473: Mathematical model; 3037: Pavement management system
• Subject Areas: Finance; Pavements;

Filing Info

• Accession Number: 00808083
• Record Type: Publication
• Source Agency: Transport Research Laboratory
• Files: ITRD
• Created Date: Apr 4 2001 12:00AM