ECONOMICS OF HIGHWAY LOCATION: A CRITIQUE OF COLLATERAL EFFECT ANALYSIS

A GENERAL CLASSIFICATION OF THE ANALYSES FOR MEASURING THE ACTUAL IMPACT OR FOR ESTIMATING THE POTENTIAL EFFECT OF HIGHWAY IMPROVEMENT SHOWS THAT HIGHWAY LOCATION IS TRICHOTOMOUS. FIRST, THE TRADITIONALLY APPLIED ANALYSIS IS THE ENGINEERING ECONOMY METHOD BASED ON TOTAL PRIMARY USER BENEFITS AND COSTS. SECOND, WELFARE ECONOMISTS CONTEND THAT MAXIMUM SOCIAL EFFICIENCY IN RESOURCE ALLOCATION REQUIRES MEASUREMENT OF THE TOTAL SECONDARY OR TERTIARY COLLATERAL BENEFITS AND COSTS. THE CONCLUSION OF AN EARLIER STUDY WAS THAT THE COLLATERAL EFFECT METHOD DOES HAVE CERTAIN ADVANTAGES OVER THE TRADITIONAL ENGINEERING ECONOMY ANALYSIS . THE THIRD CATEGORY IS MARGINAL ANALYSIS BASED ON THE EQUALITY OF MARGINAL USER BENEFITS AND COSTS AS THE MEASURE OF EFFICIENCY IN THE USE OF RESOURCES IN HIGHWAY INVESTMENT. ECONOMISTS WHO ADVOCATE THIS LAST METHOD HAVE EXPRESSED DOUBT AS TO THE CONCEPTUAL AND OPERATIONAL RELEVANCE OF THE USE OF TOTAL VALUES IN THIS DECISION PROCESS. THE PAPER REVIEWS HIGHWAY LOCATION METHODOLOGY IN GENERAL, AND DISCUSSES COLLATERAL EFFECT ANALYSIS IN VIEW OF THE CRITICISMS OF THE MARGINAL THEORISTS IN PARTICULAR.

Media Info

  • Media Type: Print
  • Pagination: pp 53-61
  • Monograph Title: Indirect and sociological effects of highway location and improvement
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00201112
  • Record Type: Publication
  • Files: TRIS, TRB
  • Created Date: Dec 12 1994 12:00AM