This paper demonstrates how road improvements can be interpreted as productivity
improvements in the transportation services industry. Such economic gains are then
translated into a general equilibrium context in the case of the Peace Bridge between
Buffalo, New York, and Fort Erie, Ontario, Canada. Variables exogenous to the model are (a)
the measured travel time enhancements to be incurred on the improved link and (b) the
forecast value of shipments by each industry to be moved across it. This information is used …

In this paper, we demonstrate how one can interpret road improvements as productivity
improvements in the transportation services industry. We then translate such economic
gains into a general equilibrium context in the case of the Peace Bridge at Buffalo, NY.
Variables exogenous to the model are (1) measured travel time enhancements to be
incurred on the improved link and (2) each industry's value of shipments moved across it.
Using this information we estimate industries' responses to these travel time reductions in …