EVANSTON, Ill. — Richard Hornbeck, an economic historian from the University of Chicago Booth School of Business, is set to present a critical reassessment of how transportation infrastructure investments are evaluated in economic models. Speaking at the 2025 Leon N. Moses Distinguished Lecture in Transportation hosted by the Northwestern University Transportation Center (NUTC), Hornbeck will argue that conventional frameworks fail to capture the full economic benefits due to their reliance on idealized assumptions. n nThe lecture, titled “Amplified gains from transportation infrastructure investments,” will be held at 7:30 p.m. on Wednesday, November 5, at 700 University Place in Evanston. Admission is free and open to the public, though advance registration is recommended. n nHornbeck, who holds the V. Duane Rath Professorship in Economics at the University of Chicago, specializes in the historical evolution of the U.S. economy. He contends that standard models often assume perfectly competitive markets and seamless access to capital—conditions rarely met in reality. By neglecting real-world frictions such as market concentration and financial constraints, these models underestimate the transformative impact of major transport projects. n nTo illustrate his point, Hornbeck will revisit the expansion of railroads in the late 19th century. Traditional analyses have downplayed their contribution to national growth, but when accounting for broader economic inefficiencies, the true value of the rail network becomes significantly more pronounced. Adjusting modeling approaches in this way could lead to better-informed decisions about future infrastructure spending. n nBeyond his academic role, Hornbeck is a research associate at the National Bureau of Economic Research, contributing to studies on American economic development, environmental economics, and global economic growth. Before joining the University of Chicago in 2015, he served as the Dunwalke Associate Professor of American History at Harvard. His accolades include the Alfred P. Sloan Fellowship in 2014 and participation in the 2009 Review of Economic Studies Tour. n nThe annual lecture honors the legacy of Professor Leon N. Moses, a pioneering figure in transportation economics and regional science, and a longtime contributor to the NUTC. n nEstablished in 1954, the NUTC remains a leading interdisciplinary hub for research and education in transportation and supply chain systems. It brings together scholars, industry professionals, and policymakers to advance understanding of how people, goods, energy, and information move across networks. n
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Economic historian to discuss underestimated gains from transportation investments
EVANSTON, Ill. — Richard Hornbeck, an economic historian at the University of Chicago Booth School of Business, will discuss how flawed economic models underestimate the true impact of transportation investments during the 2025 Leon N. Moses Distinguished Lecture in Transportation at Northwestern University this week. n nHosted by the Northwestern University Transportation Center (NUTC), the lecture, “Amplified gains from transportation infrastructure investments,” will take place at 7:30 p.m. on Wednesday, Nov. 5 at 700 University Place in Evanston. The free lecture is open to the public but registration is encouraged. n nHornbeck is the V. Duane Rath Professor of Economics at the University of Chicago, where he studies the historical development of the U.S. economy. In his lecture, he will argue for a new framework that accounts for real-world imperfections often overlooked in traditional economic models of infrastructure investment. These models typically assume the economy functions efficiently. But, in reality, markets can be uncompetitive, and firms often struggle to access financing. n nHornbeck will illustrate this flaw using the example of U.S. railroad expansion in the late 1800s. Ignoring broader economic distortions led to an understatement of the railroads’ contribution to economic growth. By reworking these frameworks, economists can more accurately estimate the benefits from future transportation investments. n nIn addition to his position at the University of Chicago, Hornbeck is a research associate at the National Bureau of Economic Research, affiliated with programs on the development of the American economy, development economics, and environmental and energy economics. Prior to joining Chicago Booth in 2015, Hornbeck was the Dunwalke Associate Professor of American History in the economics department at Harvard University. He received an Alfred P. Sloan Fellowship in 2014 and was selected for the 2009 Review of Economic Studies Tour. n nThe Leon N. Moses Distinguished Lecture in Transportation was named in honor of the late Professor Leon N. Moses for his significant contributions to the field of transportation economics and regional science and for his long and dedicated service to the NUTC. n nThe NUTC is one of the world’s leading interdisciplinary education and research institutions, serving industry, government and the public. Founded in 1954 to make substantive and enduring contributions to the movement of materials, people, energy and information, the center stands at the forefront of transportation research and education, bringing together academic researchers, students and business affiliates in open exploration of transportation and supply chain operations.
