THE TREND BEHAVIOR OF PUBLIC CAPITAL EXPENDITURE ON HIGHWAYS IN THE UNITED STATES

This paper tests the unit root hypothesis in the log level of the capital outlays on highways in the U.S. during the postwar using some newly developed time series methods of analysis. The evidence for a structural break in the trend function in the total capital outlays is found, rejecting the unit root hypothesis. The analysis uses annual data from 1956 to 1989. The timing of the break is treated as an unknown parameter. The results of this paper call into question a generally held belief that the total capital expenditure on new highways has experienced a decline in its growth rate. The evidence of trend stationarity of the capital outlays should be of interest since the validity of many econometric tests and procedures critically depends upon this property.

• Corporate Authors:

  University of British Columbia, Vancouver

  Faculty of Commerce and Business Administration
  Vancouver, British Columbia  Canada  V6T 1Z2
• Authors:
  • RAJ, B
• Publication Date: 1996-3

Language

• English

Media Info

• Features: Figures; References; Tables;
• Pagination: p. 77-92
• Serial:
  • LOGISTICS AND TRANSPORTATION REVIEW
  • Volume: 32
  • Issue Number: 1

Subject/Index Terms

• TRT Terms: Capital expenditures; Econometric models; Expenditures; Highways; Hypothesis testing; Trend (Statistics)
• Uncontrolled Terms: Hypothesis
• Subject Areas: Data and Information Technology; Finance; Highways; I10: Economics and Administration;

Filing Info

• Accession Number: 00721171
• Record Type: Publication
• Files: TRIS
• Created Date: May 2 1996 12:00AM