The principles for investment in transport infrastructure are examined. Public projects in infrastructure should be justified by their allocative effects, and the primary test criterion is how far a certain investment leads to savings of productive resources, which the can be used to increase the growth of the production potential, e.g. reduction in time losses, traffic accidents, and environmental pollution. This paper considers the non-allocative effects also, e.g., distribution of income, regional development and employment. The method used is the input-output analysis, which provides primary and secondary effects on production and employment. The primary effects contain influences on investment producers and on input industries; the secondary effects describe changes in production and employment, out of the income expenditures of persons employed through investment and resulting changes in the demand for consumer goods.

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  • Corporate Authors:

    Institute for Transportation, Incorporated

    1410 Duke University Road
    Durham, NC  United States  27705
  • Authors:
    • BAUM, H
    • Pfau, G
  • Publication Date: 1991-5

Media Info

Subject/Index Terms

  • TRT Terms: Employment; Investments; Transportation
  • Subject Areas: Administration and Management; Economics; Society; Transportation (General); I10: Economics and Administration;

Filing Info

  • Accession Number: 00611294
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Aug 31 1991 12:00AM