This article examines the role that economics can play in analysing problems with urban transportation in the United States. The specific problems addressed are failing infrastructure, financially weak public transit, environmental impacts of motor vehicles, motor vehicle accidents, and traffic congestion. Simple quantitative analyses, even though approximate, can help to focus attention on the most promising classes of policies. Those classes involve some technological measures and some narrowly targeted behavioural changes, but not the widespread curtailment of motor vehicle use. (A)
Abstract