THE CAPITAL INVESTMENT IN HIGHWAYS

LARGE CAPITAL OUTLAYS HAVE BEEN MADE FOR CONSTRUCTION OF HIGHWAYS, ROADS, AND STREETS OVER THE PAST FOUR DECADES. IMPROVEMENTS ACHIEVED WITH THESE OUTLAYS ARE NOT PERMANENT. THEY START DEPRECIATING FROM THE DAY THEY ARE FIRST BUILT. THIS REPORT REPRESENTS THE INITIAL EFFORT TO MEASURE THE EXTENT OF SUCH DEPRECIATION EXPERIENCED BY ALL HIGHWAYS, ROADS, AND STREETS, IN TOTAL. THE ANALYSIS COVERS THE PERIOD 1914 TO 1952 AND IS PRESENTED IN TERMS OF THE ESTIMATED PRICE LEVEL AS OF JANUARY 1, 1953. IN THE YEARS PRIOR TO WORLD WAR II, THE TREND OF DEPRECIATED INVESTMENT IN ALL HIGHWAYS, ROADS, AND STREETS WAS UPWARD. DURING WORLD WAR II, HOWEVER, CAPITAL OUTLAYS FOR CONSTRUCTION WERE INSUFFICIENT TO MEET THE DEPRECIATION TAKING PLACE AND THE TREND WAS REVERSED. ALTHOUGH CAPITAL OUTLAYS AGAIN EXCEEDED DEPRECIATION IN THE POSTWAR PERIOD, IT HAS TAKEN UNTIL JANUARY 1, 1953, FOR THE DEPRECIATED INVESTMENT TO RECOVER TO ITS 1941 LEVEL. CERTAIN DATA ARE SHOWN FOR PRINCIPAL ROAD SYSTEMS AND FIXED ASSETS SOLELY FOR PURPOSES OF PORTRAYING THE ANALYSIS PROCESSES EMPLOYED. SINCE IT WAS NECESSARY TO USE ESTIMATES WHERE GAPS IN THE BASIC DATA WERE ENCOUNTERED, IT IS TO BE EXPECTED THAT AS FURTHER RESEARCH ON THIS SUBJECT IS CONDUCTED, SOME OF THE DETAILED STATISTICS WILL BE REVISED. IT IS LIKELY, HOWEVER, THAT THESE REVISIONS WILL CAUSE NO SUBSTANTIAL CHANGE IN THE CONCLUSIONS WHICH MAY BE DRAWN FROM THE OVER-ALL TRENDS AND GENERAL FINDINGS FOR ALL HIGHWAYS, ROADS, AND STREETS, COMBINED. /AUTHOR/

  • Supplemental Notes:
    • Vol 32, pp 1-11, 4 FIG, 6 TAB
  • Authors:
    • Farrell, F B
    • Paterick, H R
  • Publication Date: 1953

Media Info

  • Monograph Title: Proceedings of the Thirty-Second Annual Meeting of the Highway Research Board, Washington, D.C., January 13-16, 1953
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00201436
  • Record Type: Publication
  • Files: TRIS, TRB
  • Created Date: May 5 1994 12:00AM