Abstract:
In recent years there has been concern over the deterioration and lack of adequate
funding for the US road and highway system. The main goals of this study are to
examine how increasing use of general financing methods effects road quality, to
determine if capital outlay and maintenance expenditure impact road quality
differently, and to determine the effect diverting user fees to mass transit purpose has
on road quality. An empirical model is constructed to estimate road quality. Results
indicate that states that have large user fee gaps do not systematically observe lower
road quality. Increased state spending on capital outlay and maintenance results in
improved quality with maintenance expenditure having a larger effect. Diversion of
user fees away from highway purposes towards mass transit results in lower road
quality.
