Value-Based Investing for Government Infrastructure: Financing Virginia's Roads

摘要

One of the reasons that market economies create high standards of living is the efficiency of their capital markets. The main task of capital markets is to channels scarce capital resources into their most highly valued uses. This is a difficult and complex undertaking in modern economies. in 2007, U.S. business firms invested $2.1 trillion in plant and equipment. This is a huge sum, but it only begins to tell the story. Investments are divided among tens of thousands of potential uses, from mundane items such as desks and chairs to sophisticated equipment such as magnetic resonance inaugers or computerized farm equipment. Not only are there many thousands of goods to invest in, but the value of one capital good depends on the availability of complementary goods.