EVALUATION OF REGIONAL ECONOMIC EFFECTS OF ALTERNATE HIGHWAY SYSTEMS

THIS REPORT DESCRIBES HOW A MULTIREGIONAL, MULTI- INDUSTRY FORECASTING MODEL WILL BE USED TO EVALUATE ALTERNATIVE HIGHWAY SYSTEMS. THE DRIVING FORCE IN THE FORECASTING MODEL IS A SET OF EQUATIONS THAT EXPLAIN INDUSTRY LOCATION BY THE RELATIVE PRICES THAT INDUSTRY FACES AT EACH LOCATION. HIGHWAY SYSTEMS EFFECT FORECASTS IN THREE PRINCIPAL WAYS: (1) IMPROVED HIGHWAYS DECREASE THE TRANSPORTATION COSTS OF SHIPPING GOODS FROM ONE REGION TO ANOTHER AND THUS INFLUENCE THE LOCATION OF INDUSTRY; (2) IMPROVED HIGHWAYS REDUCE THE CONGESTION WITHIN A REGION, PARTICULARLY IN METROPOLITAN AREAS; AND (3) THE CONSTRUCTION OF HIGHWAYS STIMULATES EMPLOYMENT AND INCOME. PROJECTION OF ECONOMIC AND DEMOGRAPHIC VARIABLES ARE MADE BY THE DEPARTMENT OF COMMERCE ECONOMIC AREAS FOR THE YEAR 1990 UNDER FIVE ALTERNATIVE ASSUMPTIONS CONCERNING HIGHWAY SYSTEMS. THE ALTERNATIVES ARE :(1) THE BASE YEAR SYSTEM WHICH ASSUMES THAT WORK ON THE INTERSTATE HIGHWAY SYSTEM STOPPED IN 1970; (2) THE COMPLETED INTERSTATE SYSTEM WHICH ASSUMES THAT THE PRESENT INTERSTATE HIGHWAY SYSTEM WILL BE COMPLETED BY 1976; (3) THE EXTENDED PRIMARY SYSTEM WHICH EXTENDS THE INTERSTATE SYSTEM TO INCORPORATE SMALLER CITIES INTO THE INTERCITY NETWORK; (4) THE ECONOMIC DEVELOPMENT SYSTEM WHICH IS DESIGNED TO SERVE AREAS WITH LOW INCOMES; AND (5) THE URBAN SYSTEM WHICH IS DESIGNED TO LOWER TRAFFIC CONGESTION IN URBAN AREAS. THESE LAST THREE SYSTEMS ARE HYPOTHETICAL ALTERNATIVES SCHEDULED FOR CONSTRUCTION BETWEEN 1976 AND 1986. /FHWA/

  • Corporate Authors:

    Harris, Curtis Assoc, Inc

    ,    

    Federal Highway Administration

    1200 New Jersey Avenue, SE
    Washington, DC  United States  20590
  • Authors:
    • Stein, M M
  • Publication Date: 1973-1

Subject/Index Terms

Filing Info

  • Accession Number: 00201243
  • Record Type: Publication
  • Source Agency: Federal Highway Administration
  • Contract Numbers: DOT-FH-11-7766
  • Files: TRIS, USDOT
  • Created Date: Aug 20 1973 12:00AM