The report investigates the contribution of publicly owned highways and streets to manufacturing cost structure. Specifically, a short-run variable cost function is specified and estimated. Highways and streets capital is treated as one of the fixed inputs in the cost function. We discover that highways and streets capital provides positive marginal benefits to firms in the manufacturing industry. That is, an increase in highways and streets capital reduces manufacturing costs. Subsequently, the productivity in the manufacturing sector is improved. Therefore, a conventional benefit-cost analysis of a specific transportation project should take into account the potential productivity benefit.
Transportation and Manufacturing Productivity (Transportation Productivity and Multimodal Planning)
1993
47 pages
Report
No indication
English
Transportation & Traffic Planning , Economic Studies , Transportation , Economic & Community Development , Road Transportation , Cost benefit analysis , Highway planning , Productivity , Manufacturing , Highway costs , Economic analysis , Regional development , Investment return analysis , Regional planning , Transportation planning
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