ECONOMIC IMPACT OF PRIMARY ROADS-WHAT KIND OF EVIDENCE

A discussion of an earlier study on the effects of primary road construction on sub-regional economic growth is presented. The discussors note that the redistributional and real income effects of primary road investment are in principle distinct. Even if a road investment caused substantial shifts in the location of activity which were thought to be associated with changes in labor activity levels in particular locations, it might still be the case that the effect was predominantly redistributional and that the user benefit measured as a proxy for the change in total social welfare was appropriate. The presence, or absence, of relocational effects is neither necessary nor sufficient evidence of a disparity between "true social benefit" and "measured user benefit". Given the difficulty of obtaining and interpreting employment date as evidence of the existence of unrecognized secondary benefits of primary road investments, the discussors suggest the use of traffic data. As transport costs are reduced, a consequent structural change in the economy to produce, and be associated with, changes in transport patterns would be expected. Comments are made on the analyses of traffic flows on certain British transport corridors which may support these assertions.

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  • Corporate Authors:

    Pergamon Press, Incorporated

    Maxwell House, Fairview Park
    Elmsford, NY  USA  10523
  • Authors:
    • JUDGE, E
    • Gwilliam, K M
  • Publication Date: 1976

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 00167475
  • Record Type: Publication
  • Files: TRIS
  • Created Date: May 3 1978 12:00AM