We use cookies to provide you with the best possible website experience. This includes cookies that are necessary for the operation of the site, as well as cookies used for anonymous statistics, comfort settings, or displaying personalized content. You can decide which categories you want to allow. Please note that depending on your settings, some features of the website may not be available.

Cookie settings

These necessary cookies are required to enable the core functionality of the website. Opting out of these cookies is not possible.

cb-enable
This cookie stores the user's cookie consent status for the current domain. Expiry: 1 year.
laravel_session
Stores the session ID to recognize the user when the page reloads and to restore their login session. Expiry: 2 hours.
XSRF-TOKEN
Provides CSRF protection for forms. Expiry: 2 hours.
IZA Discussion Paper No. 17157
July 2024
Constructing BEA Highways and Streets Net Wealth Stocks with Detailed Types of Investment and Engineering-Based Estimates of Depreciation

This paper builds on a previous paper by the authors (Kornfeld and Fraumeni, 2022) that primarily used U.S. Federal Highway Administration Highway Statistics data to disaggregate investment in highways and streets into more detailed types to produce updated estimates of net wealth stocks and depreciation. Major components of highways and streets other than pavement: grading, bridges and other structures, traffic management, safety, and environmental, are set equal to comprehensive revision updated versions of those derived in the earlier paper. All capital outlays are controlled to current BEA estimates. The engineering-based depreciation patterns are very dissimilar to the BEA patterns. The engineering-based net wealth pavement stock depreciation patterns fall from an efficiency level of about 0.055 to zero after 20 years of life; the BEA Hulten-Wykoff-based net wealth pavement stock depreciation patterns are at approximately the same efficiency level after 62 years. BEA adopted Hulten-Wykoff default depreciation rates in the absence of other information (Fraumeni, 1997). Engineering-based pavement depreciation rates for highways and streets were generated by Picher (Fraumeni, 1999, 2007).

Communications
Mark Fallak
mark.fallak@liser.lu
+352 585-855-526
World of Labour
Olga Nottmeyer
olga.nottmeyer@liser.lu
+352 585-855-501
Network Coordination
Christina Gathmann
christina.gathmann@liser.lu

The IZA@LISER Network is a global community of scholars dedicated to excellence in labor economics and related fields, now coordinated at the Luxembourg Institute of Socio-Economic Research (LISER) following its transition from Bonn.

About IZA@LISER Network
Contact
IZA Network (Current Site Operator):

Luxembourg Institute of Socio-Economic Research (LISER)
11, Porte des Sciences
Maison des Sciences Humaines
L-4366 Esch-sur-Alzette / Belval, Luxembourg

IZA Institute (In Liquidation):

Forschungsinstitut zur Zukunft der Arbeit GmbH i. L.
Schaumburg-Lippe-Str. 5-9, 53113 Bonn. Germany
Phone: +49 228 3894-0 | Fax: +49 228 3894-510
E-Mail: info@iza.org | Web: www.iza.org
Represented by: Martin T. Clemens (Liquidator)