Chapter 15 Public Inputs, Urban Development, and Welfare in a Developing Economy

Chi-Chur Chao, Jean-Pierre Laffargue and Eden Yu

A chapter in Contemporary and Emerging Issues in Trade Theory and Policy, 2008, pp 297-314 from Emerald Group Publishing Limited

Abstract: This chapter examines the impact of urban development through the government provision of public inputs in a developing economy. When a financing constraint is taken into account, an increase in public inputs may worsen urban unemployment and hence reduce welfare of the economy. Further, the optimal level of public-input provision is larger (smaller) than that under full employment, if there exits a positive (negative) employment effect. The theoretical results are confirmed by numerical simulations.

Keywords: Public input; urban development; employment effect (search for similar items in EconPapers)
Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:eme:fegzzz:s1574-8715(08)04015-3

DOI: 10.1016/S1574-8715(08)04015-3

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