Quantifying spatial misallocaton in centrally provided public goods
AbstractWe show how an optimization algorithm can be used to approximately quantify the costs to users of spatial misallocation in centrally provided goods.These methods can be employed to evaluate the large programs of public good construction that have been central features of economic plans in many developing countries. We apply these methods to the allocation of post-offices in an administrative block of South India between 1981-1991 and find that more appropriate choices for post office locations could have reduced aggregate costs of travel to citizens in this area by at least 20.
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Bibliographic InfoPaper provided by Indian Statistical Institute, New Delhi, India in its series Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers with number 04-07.
Length: 17 pages
Date of creation: May 2004
Date of revision:
Other versions of this item:
- Athreya, Siva & Somanathan, Rohini, 2008. "Quantifying spatial misallocation in centrally provided public goods," Economics Letters, Elsevier, vol. 98(2), pages 201-206, February.
- Siva Athreya & Rohini Somanathan, 2006. "Quantifying Spatial Misallocation In Centrally Provided Public Goods," Working papers 148, Centre for Development Economics, Delhi School of Economics.
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
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