The traditional bottleneck model for road congestion promotes the implementation of a triangular, fully time varying, charge as the optimal solution for the road congestion externality. However, cognitive and technological barriers put a practical limit to the degree of differentiation real...

Highway construction occurs nowadays mainly through widening of existing roads rather than building new roads. This paper documents that highway widenings considerably reduce congestion in the short run, defined here as 6 years. Using longitudinal microdata from highway detector loops in the...

This paper estimates the local welfare impacts of road maintenance investments. We instrument road quality exploiting Indonesia's two-step budgeting process for allocating funding to local road authorities. Using comprehensive data on road quality from 1990-2007, we find that better roads help...