Economic Effects of Transit and Highway Construction and Rehabilitation

Abstract

This paper explores the economic effects of highway construction specifically as a result of economic development funds that have been available to the states for a decade. The introduction includes a research of the legislative history of the program. It also includes summary values as to the dollars that have been appropriated by the Congress and utilized by the states. The summary comments are supported by comprehensive materials included in the Appendix to the paper. The introduction includes an analysis as to the Congressional intent for the program. The paper is based upon the results of a questionnaire developed by the writer and directed to the states who have participated in the program and document the type of projects completed by the states as well as the philosophical base from which the projects were selected. It explores before and after study methodologies by the states, the Federal Highway Administration, and/or the Government Accounting Office on behalf of the Congress to determine the effectiveness of the program. The paper documents the writer's views on the activities of the states he believes to have utilized the funds most effectively, which will be based upon the real or perceived economic effects of the effort. It offers some judgmental comments as to the need for the program in light of the present emphasis for highway dollars being directed toward resurfacing, rehabilitation, and reconstruction efforts of the various highway systems.