US economic restructuring and demand for transportation services

Despite continued attention given to the physical condition of public infrastructure facilities, research has not yet fully explored the relationship between the level and quality of infrastructure services and private sector economic performance. Recent empirical evidence suggests that, at a macro level of analysis, aggregate infrastructure expenditures are related to measures of national productivity, gross state products, regional employment or other measures of economic activity. However, while such macro studies help make the general point that as a nation the US needs to invest more in its basic infrastructure, they provide no guidance on how those expenditures should be allocated to obtain the highest level and quality of infrastructure services. This article explores the implications of structural changes taking place in the US economy, especially the rise of the service sector, on the future demand for transportation services, and suggest future research directions that will aid in the decision-making process so limited transportation resources can be used most efficiently. -Authors