Papers

Transportation infrastructure investment during economic downturns often occurs too slowly—and in insufficient quantities—to help stabilize the economy. Andrew Haughwout of the Federal Reserve Bank of New York proposes a modification of the BUILD grant program that would automatically fund additional transportation infrastructure investments during recessions.

Policy debates often focus only on major decisions made in Washington, DC. But for many Americans, the decisions made much closer to home have just as large, if not larger, effects on day-to-day life. These nine economic facts highlight the important economic roles of state and local governments, emphasizing how their budgetary and regulatory decisions affect access to opportunity. Transportation and land-use policy receive particular attention given their large impacts on the patterns of economic activity.

There is broad agreement about the importance of transportation infrastructure, but disagreement about the goals of transportation policy and the appropriate means to achieve these goals. In this paper, Matthew Turner of Brown University examines the current state of U.S. infrastructure and discusses different reforms that focus on improving both access to opportunity and the efficiency of the highway and bus transit systems.

Many place-based policies have been unsuccessful, failing to deliver cost-effective benefits to disadvantaged communities; meanwhile areas across the county have large and rising concentration of poverty. David Neumark proposes that the federal government subsidize employment in places that are struggling, focusing on nonprofit jobs that contribute to local public goods. 

This paper seeks to provide an economic framework for evaluating infrastructure investments and their methods of funding and finance. Why should we invest in infrastructure, what projects should be selected, who should decide, and how should those investments be paid for are all questions that can be better answered with the help of sound economic theory and evidence.

Many agree on the need for increased investment in America’s aging infrastructure, including roads, bridges, and airports. This set of economic facts provide objective background to help guide necessary policy and political discussions.

The nation’s transportation infrastructure, it is widely agreed, is eroding and in need of long-term, innovative policy solutions and adequate investment. In this discussion paper, Roger Altman, Aaron Klein, and Alan Krueger propose improvement and expansion of the Transportation Infrastructure Finance and Innovation Act (TIFIA) lending program, reauthorization of Build America Bonds, better utilization of the Army Corps of Engineers and the Harbor Maintenance Trust Fund, and reform of the federal gas tax.

The United States’ aging water infrastructure will be increasingly strained by population growth, economic expansion, and the effects of climate change. In this Hamilton Project paper, Newsha K. Ajami, Barton H. Thompson, Jr., and David G. Victor suggest that solutions to the country’s growing water challenges lie, in part, with the development and adoption of new innovative technologies. The authors present three policy and regulation recommendations to facilitate greater innovation in the water sector.

David Conrad and Ed Thomas explore how the National Flood Insurance Program and other federal disaster relief programs could be reformed to better align the costs and benefits of living in disaster-prone areas and help put the budget on more sound footing. This proposal aims to reduce budget costs of natural disasters and reduce risk to life and property of Americans living in disaster-prone areas.

Investments in infrastructure are essential for a vital economy. Tyler Duvall and Jack Basso suggest looking to user fees as a way to raise revenues, reduce congestion on major roadways, reduce pollution, and promote wiser infrastructure investments.

Domestic natural gas is both cleaner and more affordable than oil, making it an attractive and practical alternative. In a new Hamilton Project paper, Christopher R. Knittel of MIT proposes a series of steps to promote natural gas in transportation.

Confronting near-term budget challenges, state and local governments are under tremendous pressure to focus on immediate needs at the expense of long-term investments. Michael Greenstone and Adam Looney highlight four policy principles for state and local governments with an emphasis on the importance of infrastructure investments for economic growth and prosperity.

Eduardo Engel, Ronald Fischer, and Alexander Galetovic propose a series of best practices for state and local governments to follow when using public–private partnerships to provide infrastructure.

Matthew Kahn and David Levinson propose a reorganization of our national highway infrastructure priorities to preserve, maintain, and enhance existing infrastructure and the creation of the Federal Highway Bank to meet these goals.

Andrew Ang and Richard Green propose the establishment of CommonMuni, a not-for-profit advisory firm designed to reduce borrowing costs for municipalities by overcoming the difficulty individual municipalities and investors have coordinating with one another.

Dorothy Robyn argues that there are fundamental problems with the way the federal government manages the air traffic control system and proposes policy changes to improve the system’s safety and reliability.

Jon M. Peha outlines policies through which government could facilitate the expansion of broadband infrastructure into unserved communities. He argues that these policy reforms would move America closer to the goal of universal access to broadband Internet.

This paper argues that the current lump-sum pricing of auto insurance is inefficient and inequitable. It proposes and evaluates a simple alternative: pay-as-you-drive (PAYD) auto insurance.

Philip J. Weiser argues that our spectrum policy has failed to facilitate an optimal and efficient use of this important resource. He identifies a new direction for spectrum policy reform to catalyze more efficient uses of spectrum.

David Lewis argues that congestion pricing would reduce the economic costs from congestion and guide transportation resources to their best use, and would generate revenue for new investment and to compensate low-income people for whom toll payments are burdensome.

Manasi Deshpande and Douglas W. Elmendorf argue that America now has the opportunity to channel public concern and frustration into a national infrastructure strategy that promotes infrastructure as a central component of long-term, broadly shared growth.