R. Elvik, EXPLAINING THE DISTRIBUTION OF STATE FUNDS FOR NATIONAL ROAD INVESTMENTS BETWEEN COUNTIES IN NORWAY - ENGINEERING STANDARDS OR VOTE TRADING, Public choice, 85(3-4), 1995, pp. 371-388
Road investment planning in Norway is officially based on cost-benefit
analyses, but the results of such analyses have been shown to hate li
ttle impact on policy. This paper analyses the distribution of state i
nvestment funds for national roads between counties in Norway, trying
to find a rational choice explanation of the departure of road investm
ent policy from cost-benefit considerations. Three models are proposed
to explain the distribution of investment funds between counties: (1)
the highway sufficiency rating model, (2) the net economic benefit mo
del and (3) the vote trading model. Analyses for 1990-93 and 1994-97 i
nvestment planning terms support the highway sufficiency rating model
and the vote trading model. The net economic benefit model is not supp
orted. The highway sufficiency rating model and the vote trading model
are highly correlated, making their relative explanatory contribution
s impossible to identify.