The author examines current management practices in road agency organisation in Finland and recommends more efficient arrangements. The study focuses on a number of questions: a) are there economies of scale ?; b) how many projects should be under construction yearly ?; c) what is the output of a road agency ?; d) what is the effect of input prices on efficiency ?; and e) what are the effects of management and output characteristics on efficiency and productivity ? A model is used describing the road production process by a cost function. Input, output and management variables are defined. The results and their implications for the organisation of management systems are discussed. It is recommended that the regional agency should have comprehensive responsibility regardless of the size of the region.
Abstract