Microeconomics for Infrastructure Rehabilitation

Infrastructure rehabilitation has been a tremendous challenge for municipalities and public agencies. Although several methods exist to allocate a limited rehabilitation budget among a large number of competing assets, no efforts provide solid economic reasoning or justification behind fund-allocation decisions. Thus, this paper introduces a new perspective in infrastructure rehabilitation, inspired by the broad array of concepts available in the science of microeconomics. The paper discusses four microeconomic theories and examines their applicability in the infrastructure domain: equilibrium between demand and supply to balance economic decisions, utility maximization through equitable return on spending, indifference curves for sensitivity analysis, and loss-aversion behavior of decision makers. Initial results of an actual case study of 1300 pavement sections proved the applicability of basic microeconomic concepts in the infrastructure rehabilitation domain.

Language

  • English

Media Info

  • Media Type: Web
  • Features: References;
  • Pagination: pp 1279-1288
  • Monograph Title: Construction Research Congress 2014: Construction in a Global Network

Subject/Index Terms

Filing Info

  • Accession Number: 01525556
  • Record Type: Publication
  • ISBN: 9780784413517
  • Files: TRIS, ASCE
  • Created Date: May 14 2014 3:05PM