The Economic and Social Costs of Bumpy Roads: Measuring Infrastructure Quality and Government Effectiveness

This podcast episode, featuring economist Ed Glazer, delves into the often-overlooked economic and social costs of poor infrastructure, specifically focusing on bumpy roads. Challenging the narrow view of economics as solely GDP or financial markets, Glazer, a student of Gary Becker, argues that everyday human experiences, like commuting on rough roads, are crucial economic considerations. The core argument is that improving basic government services, such as road maintenance, can significantly enhance the quality of life for ordinary citizens and represents a tangible path towards "better government". Glazer's research employs a novel methodology using vertical acceleration data from millions of Uber rides to quantify road bumpiness across America. This data, combined with an economic model that observes how drivers slow down predictably at town borders with varying road quality, allows for the estimation of people's "willingness to pay" to avoid bumpiness. A key distinction is made between the direct costs (time wasted, car damage, unpleasantness) and the broader economic implications (supply chain disruptions). The study reveals a median cost of 31 cents per ride due to bumpiness and, more critically, a significant racial disparity: households in 100% African-American neighborhoods incur $318 more in "driving pain" annually for 3,000 miles of local driving compared to those in 100% white neighborhoods. The practical insights highlight a critical failure in local government functionality: repaving practices often lack correlation with actual road roughness. In three out of four cities studied, roads were not repaved based on need, indicating inefficient resource allocation and a disconnect between public service provision and citizen experience. The recommendation is to shift political discourse from debates about government size to improving the effectiveness of core services. By focusing on simple, less controversial improvements like smoother roads or better DMV experiences, governments can demonstrate tangible value and rebuild public trust. The broader implications extend beyond mere road quality, touching upon issues of social equity, urban planning, and the role of data in public policy. The racial disparity in road quality underscores systemic inequalities in resource distribution and public service provision. Glazer emphasizes that infrastructure, while seemingly humble, is an "amazingly understudied topic" with profound connections to finance, business, and consumer welfare. The research advocates for a data-driven approach to governance, leveraging new measurement technologies to foster accountability and drive improvements that genuinely make governments function better and enhance the overall quality of life.

I don't think about economics as just being about GDP figures or financial markets or other the things I'm a student of Gary Becker's and to me all parts of human life have something to do with economics.

If we actually hope to make our governments better one of the things that we need to ask about is are there simple things that governments can do to basically improve the experience of everyday people when they're engaged in their commutes.

We're looking at a really simple way in which infrastructure is is good versus bad and that's just how smooth are the roads how bumpy is your ride how painful is your is your morning commute.

Our estimates are that a a household that drives 3,000 miles on uh local roads will per year suffer $318 more driving pain in a 100% African-American neighborhood than in a 100% white neighborhood.

The bulk of the racial differen is is across towns not within towns.

In three of the four cities there's really no connection whatsoever between Road roughness and your probability of being repaved.

Poor people and African-Americans pay it more at least they do in terms of the the pain that they go through.

I'm really eager to have the debate about how we make government better right and often it's easiest to start in the least controversial most politically absent things like how can I make the department of motor vehicles uh experience better how can we make our roads less bumpy.

Infrastructure remains an amazing topic an amazingly understudied topic amazing important topic it relates to finance it relates to the experience of ordinary businesses ordinary consumers.

It's a field in which amazing things are happening in the technology of economic research.