MEASURING ECONOMIC BENEFITS OF INTERMODAL TRANSPORTATION

Abstract

Intermodal transportation is an example of the general purpose technologies that are characterized by statistically significant spillover effects. Diffusion, secondary innovations, and increased demand for specific human capital are basic features of general purpose technologies. Eventually these features affect major macroeconomic variables, especially productivity. Micro and macro evidence should be combined to establish a better understanding of the connecting mechanisms from the micro level to the overall performance of an economy or the macro level. This study analyses these issues with respect to intermodal transportation. The goal is to understand the basic micro and macro mechanisms behind intermodal transportation in order to develop a rigorous framework for evaluation of benefits from intermodal transportation. Usually benefits for transportation investments are analyzed within a framework of cost-benefit analysis or its related techniques such a financial analysis, cost-effectiveness analysis, life-cycle costing, economic impact analysis, and others. While these tools are valid techniques in general, their application to intermodal transportation would underestimate the overall economic impact by missing important aspects of productivity enhancement.