Rural Road Financing Strategies: Two New Models Applied to North Dakota Counties

摘要

The study examines consolidation of road services by local governments, andexplores the optimal mix of roads for rural counties. A methodology for measuring economies in the provision of local road services is presented. This methodology is unique in two ways: (1) it better accounts for relevant variables that explain expenditures so that economies of size can be more accurately measured; and (2) it does not require an extensive data set, so economies can be measured by region or state. A methodology for optimizing the mix of gravel and paved roads by local governments is also presented. This methodology measures the costs and benefits of converting gravel roads to paved, and paved to gravel.