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III. THE MAIN FINDINGS OF THE 1996 REPORT

The 1996 examines the contribution of two alternative types of highway capital to output growth and productivity of thirty-five U.S. industrial sectors individually and of the economy as a whole. . Two measures of highway capital are used in this study. The first is total highway capital, which includes roads under federal, state, and local government jurisdiction. The second is the stock of upper level roads excluding local government investments in roads and streets, which is commonly referred to as the non-local highway system (NLS). The NLS includes the federal-aid highway system, with the exception of expenditures on secondary rural roads, and represents approximately 70 percent of total highway capital stock. The purpose of incorporating the NLS stock in the analysis was to examine the impact of a highway network consistent with the underlying definition of the National Highway System (NHS). We also wanted to see whether the rate of return on the NLS stock of highway capital was different from that of the total highway capital. Furthermore, we wanted to test the sensitivity of the model estimates to different measures of highway capital stock.

The relevant policy issues addressed in the 1996 report are:

To answer these questions an analytical framework possessing several advantages over existing models reported in the literature was developed and estimated using a comprehensive body of data covering thirty-five industries and sectors of the US economy for the period 1950 to 1989. The basic elements of this analytical framework were:

The main results of the 1996 report can be briefly summarized as follows:

Chapter 2 | Chapter 4


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