Quantifying spatial misallocaton in centrally provided public goods

Siva Athreya and Rohini Somanathan
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Siva Athreya: Indian Statistical Institute, New Delhi

Discussion Papers from Indian Statistical Institute, Delhi

Abstract: We 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.

Pages: 17 pages
Date: 2004-05
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Related works:
Journal Article: Quantifying spatial misallocation in centrally provided public goods (2008)
Working Paper: QUANTIFYING SPATIAL MISALLOCATION IN CENTRALLY PROVIDED PUBLIC GOODS (2006)
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