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Optimal Road Network and the Gains from Intranational Trade

Lucas Dias (), Eduardo Haddad () and Andrés Maggi
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Lucas Dias: Departamento de Economia, Universidade de São Paulo
Andrés Maggi: Harvard University

No 15-2020, TD NEREUS from Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS)

Abstract: This paper assesses the efficiency of the Brazilian road network using data on road speeds and distances and a spatial general equilibrium model with costly trade. We find that Brazil would gain 0.31% of welfare if better organize its road network for intranational trade and that the most populated regions are relatively oversupplied of transport infrastructure compared with the remote and poor areas. We further find long lasting effects of the highways’ project designed to integrate Brasília with the rest of the country in the 1960s. Regions connected by the so-called Radial Highways are currently oversupplied of transport infrastructure.

Keywords: Optimal Road Network; Intranational Trade (search for similar items in EconPapers)
JEL-codes: F10 O18 R40 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2020-12-30
New Economics Papers: this item is included in nep-geo, nep-his, nep-int, nep-tre and nep-ure
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