ECONOMIC ANALYSIS FOR TRANSPORTATION - A GUIDE FOR DECISION MAKERS

ECONOMIC ANALYSIS IS A DECISION-MAKING TOOL HAVING TWO BASIC APPLICATIONS. FIRST, IT PROVIDES FOR AN ANALYSIS OF RELATIVE COSTS IN RELATION TO RETURNS (BENEFITS) FOR THE PURPOSE OF ASSISTING MANAGERS IN ANSWERING THE QUESTION, "WILL THE PROPOSED INVESTMENT OR EXPENSE PAY OFF?" SECOND, ANALYSIS FOR THE ECONOMY OF PROJECT DESIGN IS A DECISION-MAKING TOOL USED BY ENGINEERS IN THEIR CHOICE OF ALTERNATIVE ENGINEERING DESIGNS WHEN SEEKING THE SPECIFIC DESIGN THAT, IN THE LONG RUN, WILL PRODUCE THE MOST ECONOMICAL STRUCTURE, PROCESS, OR PROCEDURE. ECONOMIC ANALYSIS INCLUDES A RANGE OF CONCEPTS AND PROCEDURES BY WHICH THE EXPECTED RESULTS OF INVESTMENTS IN NEW FACILITIES AND ALTERATIONS TO EXISTING FACILITIES CAN BE MEASURED IN COMMON TERMS--DOLLARS--SO THAT ALTERNATIVE MEANS OF ACCOMPLISHING THE OBJECTIVES CAN BE COMPARED ON A SOUND, UNBIASED BASIS. ALSO, SEPARATE, OR INDEPENDENT, PROJECTS CAN BE COMPARED WITH EACH OTHER FOR THE PURPOSE OF AIDING IN PRIORITY SELECTION AND ALLOCATION OF RESOURCES AMONG FUNCTIONS. AN ANALYSIS FOR THE ENGINEERING ECONOMY OF AN INVESTMENT PROPOSAL IS AN EFFORT TO FIND THE EXTENT TO WHICH THE PROPOSED EXPENDITURES FOR EACH OF THE ALTERNATIVES CONSIDERED ARE LIKELY TO BE RECOVERED THROUGH FUTURE SERVICES RENDERED BY THE PROPOSED FACILITY. A STUDY TO DETERMINE THE ECONOMIC AND SOCIAL EFFECTS OF THE ALTERNATIVES BEING CONSIDERED IS NECESSARY TO INDICATE THE PROBALBLE BROAD SOCIAL, ENVIRONMENTAL, AND ECONOMIC CONSEQUENCES OF EACH ALTERNATIVE. CONCRETE EXAMPLES OF ECONOMIC ANALYSIS APPLIED TO HIGHWAY PLANNING ARE GIVEN. /AUTHOR/

  • Supplemental Notes:
    • 20 Pp, 8 FiG, 2 REF
  • Corporate Authors:

    Highway Users Federation for Safety and Mobility

    1776 Massachusetts Avenue, NW
    Washington, DC  United States  20036
  • Authors:
    • Winfrey, R
  • Publication Date: 1971-3

Subject/Index Terms

Filing Info

  • Accession Number: 00201991
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Aug 8 1971 12:00AM