THEORY OF SPILLOVER COST PRICING

A THEORY OF HIGHWAY FINANCE DERIVED FROM A COLLISION BETWEEN GROWTH OF POPULATION AND A STRUCTURE OF PRODUCTION BUILT UPON GEOGRAPHICAL CONCENTRATION IS PRESENTED. ECONOMIC THEORY IS EXAMINED THAT DERIVES FROM THE PROBLEM WHERE A SPILLOVER WILL DENOTE THE CONGESTION OF ONE HIGHWAY USER BY ANOTHER, WHERE THE REVELANT COST IS LOSS OF TIME AND GENERAL NUISANCE. THE TEST OF THE ARGUMENT IS A MATHEMATICAL EXAMINATION OF ASSUMPTIONS TO THE PROPOSITION THAT HIGHWAY PRICES /USER TAXES, TOLLS, ETC./ SHOULD EXCEED THE COST OF MAINTAINING HIGHWAYS, AND EXCEED THE COST FOR PURPOSE OF REDUCING THE PUBLIC USE OF SUCH HIGHWAYS, A THESIS IDENTIFIED BY THE BRITISH ECONOMIST, WALTERS. THE ARGUMENT PERTAINS TO A FIXED HIGHWAY PLANT WHICH IS INVARIABLY THE RESULT OF INDUSTRIAL CONCENTRATION. REFERENCE' ECONOMETRICA, A. A. WALTERS, 1961

Media Info

  • Media Type: Print
  • Features: References;
  • Pagination: pp 15-22
  • Monograph Title: Traffic congestion as a factor in road-user taxation
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00200909
  • Record Type: Publication
  • Files: TRIS, TRB
  • Created Date: Dec 22 1994 12:00AM