The third school of thought contends that layered elastic theory, when used with certain combinations of pavement moduli, predicts tensile stresses in granular base layers, even if gravity stresses are also considered (16,45,112). Instead of using a layered approach, this group prefers a finite element model in which the nonlinear responses of the granular and subgrade materials are accurately characterized. Again, the asphalt concrete layer is considered to be linear elastic. The ILLI-PAVE finite element back-calculation program (45) is a classic application of this theory. In the finite element approach discussed above, researchers have used, with limited success, various failure criteria and in some cases arbitrary procedures to overcome the problem of tensile stresses (16,112). For example, Brown and Pappin (16) used a finite element program called SENOL with a K-0 contour model and found it to be capable of determining surface deflections and asphalt tensile stresses but unable to determine the stress conditions within the granular layer. The asphalt layer was characterized as elastic with an equivalent linear modulus. They therefore concluded that the simplest approach for design calculations involves the use of a linear elastic-layered system pro- vided adequate equivalent stiffnesses are used in the analysis. This conclusion is shared by other investigators (10,61,96,97) and is the philosophy behind the work presented in this dissertation.