Governance Choice - A Theoretical Analysis

Feng Xie () and David Levinson
Additional contact information
Feng Xie: Metropolitan Washington Council of Governments

Chapter Chapter 13 in Evolving Transportation Networks, 2011, pp 179-198 from Springer

Abstract: Abstract Policy debate has lasted over the past twenty years regarding the distribution of federal highway funding in the US Federal-Aid Highway Program. The controversy arose as the program’s payment to the individual states did not match the amount of federal highway taxes each state’s highway users pay to the Highway Trust Fund (HTF), which is commonly referred to as the “donor-donee” problem (Kirk, 2004). Donee states like Alaska experience high returns from the HTF, donor states like California contribute more than they receive, while some states like Ohio have experienced instability and cycling in terms of their donor/donee status. In general, the allocation of federal highway funds appears to be based on formulas that are biased in favor of states with relatively low highway use to maintain national integration (Johnson and Libecap, 2000). In such an imbalanced allocative program, a fiscal correspondence problem arises when policy makers in donee states spend to benefit their constituent travelers and suppliers, but whose welfare costs are borne by taxpayers in all the states.

Keywords: Median Voter; Travel Demand; Ultimatum Game; Transportation Infrastructure; Road Infrastructure (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:trachp:978-1-4419-9804-0_13

Ordering information: This item can be ordered from
http://www.springer.com/9781441998040

DOI: 10.1007/978-1-4419-9804-0_13

Access Statistics for this chapter

More chapters in Transportation Research, Economics and Policy from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().