LINKAGES BETWEEN TRANSPORTATION INFRASTRUCTURE INVESTMENT AND ECONOMIC PRODUCTION

This paper presents a model of the linkages between a region's transpo rtation infrastructure investment and its economic production. demonst rating that the linkages are more complex than specified heretofore in the literature and that previous estimates of these linkages are, lik ely subject to specification-error and simultaneous-equation bias. unl ike the literature. the impact of a region's transportation Infrastruc ture investment on its transportation services and their quality is sp ecified. Equations derived from the model can be used (when estimated) to investigate the ''spatial accessibility'' and ''transportation qua lity-of-service'' impacts of a region's transportation infrastructure investment on its economic production and transportation services.