This paper shows that the inefficiency of fiscal decentralization in the presence of spillovers, a main tenet of the decentralization literature, is overturned in a particular transportation context. In a monocentric city where road (bridge) capacity is financed by budget-balancing user fees,...

This paper offers a stylized model in which an agency is in charge of investing in road capacity and maintain it but cannot use the capital market so that the only sources of funds are the toll revenues. We call this the strict self-financing constraint in opposition to the traditional self...

The development of toll road in developing countries especially in Indonesia was very slow. Although the Government of Indonesia has an accelerated toll road plan for 2020 was 4,000 km, but toll road length in 2013 was still 784 km. Because of that, the gap of toll road length in Indonesia has...