Using data envelopment analysis to explore state-by-state transportation performance indices
Date
2011
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Publisher
University of Delaware
Abstract
The Transportation Performance Index (TPI), developed by the U.S. Chamber of Commerce, captures the relationship between transportation infrastructure performance and the U.S. economy, specifically in terms of GDP growth. Both a national TPI and state-by-state indices were developed. Although the TPI serves as a useful quantitative tool that connects economic prosperity to transportation infrastructure, this relationship is complex and the TPI does not capture the nuances, particularly at the state-by-state level. The TPI is assembled from a variety of indicators capturing supply, quality of service and utilization for each mode of transportation, but it does not fully consider environmental influences that exert pressure on the TPI. Using the data envelopment analysis (DEA) method, the relationship between TPI and GDP can be clearly defined for the state-by-state data, while taking into account the effects of environmental factors, such as population growth and annual vehicle miles traveled. Similar to TPI, DEA yields a single measure of performance, where it produces a ratio of the aggregated, weighted outputs to the aggregated, weighted inputs by state and year. The main output is GDP per capita and the main input is TPI, along with other inputs, including debt and life expectancy. Overall, the research presented in this thesis focuses on how much influence environmental factors have on the relationship between transportation infrastructure and economic growth.