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Cooper (p. 23-32)

Kunz-Osborne (p. 33-41)

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JOURNAL OF APPLIED BUSINESS AND ECONOMICS

Assessments of Alternative Funding Options for Infrastructure Investment

Author(s): Sang-Hee Han

Citation: Sang-Hee Han, (2017) "Assessments of Alternative Funding Options for Infrastructure Investment," Journal of Applied Business and Economics, Vol. 19, Iss.10, pp.162-188

Article Type: Research paper

Publisher: North American Business Press

Abstract:

This paper assessed the potential impact on the U.S. economy of a hypothetical infrastructure investment

program funded by three alternative options: (1) an increase in the federal fuel excise tax rate, (2)

introduction of a nation-wide vehicle mileage tax (VMT), and (3) introduction of a nation-wide vehicle

weight tax, using the KPMG computable general equilibrium (CGE) model. To demonstrate potential

applications of a CGE model for the policy impact analysis, detailed modeling results under the federal

fuel excise tax funding option are first discussed. Then its main macroeconomic impacts are compared

with those under the other two funding options.