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If You Build It
Report

If You Build It

A Guide to the Economics of Infrastructure Investment


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Editorial Rating

8

Qualities

  • Innovative

Recommendation

The need for infrastructure improvements in the United States, where investment has been falling for decades, has never been greater. According to a 2013 report from the American Society of Civil Engineers, it would take an estimated $3.6 trillion to bring America’s transportation, utilities and flood-control structures back to acceptable levels of safety and reliability. This astute report from policy experts Diane Whitmore Schanzenbach, Ryan Nunn and Greg Nantz offers a systematic approach to prioritizing, selecting and funding projects. The authors emphasize the importance of financial responsibility and impartial decision making in tackling this enormous undertaking. getAbstract recommends this timely study to officials charged with the oversight of infrastructure spending.

Take-Aways

  • Between 2002 and 2015, US public infrastructure investment slowed by more than half, resulting in the deferred maintenance and the degradation of critical infrastructure, and contributing to decelerating advances in labor productivity.
  • Policy makers should consider two criteria in project selection: First and most important, public funds should go to projects that benefit the whole of society and that affected individuals cannot pay for on their own.
  • Second, project costs should not exceed the realized benefits, which include health and other social aspects along with readily quantifiable economic outcomes.

About the Authors

Diane Whitmore Schanzenbach is the director of the Hamilton Project at the Brookings Institution, where Ryan Nunn is a policy director and Greg Nantz is a research analyst.