Measuring Efficiency and Effectiveness of Highway Management in Sustainability

This study analyses efficiency and effectiveness of highway management at the state level in the United States. While the current literature on highway management has contributed to understanding infrastructure budget and finance, the relationship between efficiency and effectiveness measurements has not been sufficiently discussed in the context of sustainability. To fill this gap, this study was systemically designed to test the relationship by controlling the states’ political factors, fiscal capacity, median voter, and economic conditions. Data envelopment and principal component analysis with panel data covering 11-year time waves were used to measure both efficiency and effectiveness. The results of the fixed effects model and the spatial autoregressive panel model show a statistically strong relationship between efficiency and effectiveness which are respectively measured by two analysis approaches.