THE ECONOMICS OF INTER-CITY HIGHWAY: THE USES AND ABUSES OF BENEFIT-COST ANALYSIS

THE PRINCIPLES AND PROBLEMS OF ANALYZING INVESTMENTS IN ROADS BY PUBLIC AUTHORITIES ARE EXAMINED. THE METHOD OF EVALUATION DISCUSSED IS KNOWN AS BENEFIT-COST ANALYSIS. THIS TECHNIQUE ATTEMPTS TO EVALUATE INVESTMENT PROJECTS SYSTEMATICALLY, SO THAT THEY CAN BE MORE READILY COMPARED. IN ADDITION TO THE DIVERSITY OF COSTS AND BENEFITS OF ONE PERIOD OF TIME, THE DECISION-MAKING PROCESS IN ROAD BUILDING IS COMPLICATED BY THE DIFFERENT TIME PERIODS OVER WHICH BENEFITS ACCRUE FROM THE INVESTMENT. DECISION-MAKERS MUST BASE THEIR DECISIONS ON THE BEST OF THEIR AVAILABLE ESTIMATES OF THE FUTURE. DECISIONS MUST BE MADE ABOUT INCLUSION OF COSTS AND BENEFITS, VALUATIONS OF COSTS AND BENEFITS AND DISCOUNT RATES, BY REASONING FROM THE MOST FUNDAMENTAL PRINCIPLES OF RESOURCE ALLOCATION.

  • Supplemental Notes:
    • C. B. R. OcCASIONAL PAPER NO 1, PP 19-46
  • Corporate Authors:

    Bureau of Roads /Australia

    ,    

    The Econ of Roads & Road Transport

    ,    
  • Authors:
    • KOLSEN, H M
    • Stokes, N C
  • Publication Date: 0

Subject/Index Terms

Filing Info

  • Accession Number: 00201814
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jun 29 1970 12:00AM