University of California Transportation Center

This paper investigates the ways in which transportation improvements enhance production. The production of residential housing is used as a case at point. Several approaches to analysis are proposed, and an approach is adopted emphasizing productivity improvements from technological change.

After considering several ways that transportation services may relate to technological change, the authors provide an analysis of the diffusion of wallboard construction.

Overall, the study concentrates on methodology and magnitudes. It provides a way of thinking about transportation and production relations, and it indicates that service improvements may yield social savings of large magnitude.