California has authorized four toll road to be constructed and operated by private groups, and it is considering more. Construction on a similar 14-mile project in Virginia will begin in 1992. Florida, Texas, and Colorado are considering proposals for private toll roads, and there is talk of a...

Electronic toll collection has trimmed transaction costs and moved highways out of the "public goods" box and into the "public utilities" box. Economists and policymakers should think of highways as a service to be made demand-responsive, self-financing, and privately owned. This paper proposes...