An Economic Analysis of Financing an Interstate Highway System

1962 ◽  
Vol 17 (1) ◽  
pp. 143
Author(s):  
Frederick Edward Kottke
Keyword(s):  
Economic Analysis ◽  
Interstate Highway ◽  
Interstate Highway System ◽  
Highway System

scholarly journals Trade and the Topography of the Spatial Economy *

2014 ◽  
Vol 129 (3) ◽  
pp. 1085-1140 ◽  
Author(s):  
Treb Allen ◽  
Costas Arkolakis
Keyword(s):  
Economic Activity ◽  
Geographic Location ◽  
The United States ◽  
Interstate Highway ◽  
Interstate Highway System ◽  
Simple Set ◽  
Spatial Economy ◽  
Structure Of Trade ◽  
The Relationship ◽  
Highway System

Abstract We develop a general equilibrium framework to determine the spatial distribution of economic activity on any surface with (nearly) any geography. Combining the gravity structure of trade with labor mobility, we provide conditions for the existence, uniqueness, and stability of a spatial economic equilibrium and derive a simple set of equations that govern the relationship between economic activity and the geography of the surface. We then use the framework to estimate the topography of trade costs, productivities and amenities in the United States. We find that geographic location accounts for at least twenty percent of the spatial variation in U.S. income. Finally, we calculate that the construction of the interstate highway system increased welfare by 1.1 to 1.4 percent, which is substantially larger than its cost.

Sign in / Sign up

Export Citation Format

Share Document