Spatial Misallocation of Complementary Infrastructure Investment: Evidence from Brazil

Fidel Pérez-Sebastián, Rafael Serrano Quintero and Jevgenijs Steinbuks
Authors registered in the RePEc Author Service: Rafael Serrano-Quintero and Fidel Perez Sebastian

No 10650, Policy Research Working Paper Series from The World Bank

Abstract: How does the misallocation of complementary public capital affect the spatial organization of economic activity To answer this question, this paper endogenizes the government's decision to invest in the transport and electricity networks. A novel multi-sector quantitative spatial equilibrium model incorporates the quality of the electric power and the road transportation infrastructure networks, which determine sectoral productivities and trade costs. Simulation results for the Brazilian economy point to significant welfare gains from reallocating infrastructure investment. Spatial and fiscal complementarities in heterogeneous infrastructure provision determine a sizeable part of those gains. Misallocation of both infrastructure investments is positively associated with local political support for the incumbent authority.

Date: 2023-12-18
New Economics Papers: this item is included in nep-cmp, nep-ene and nep-tre
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://documents.worldbank.org/curated/en/09982211 ... 85a02738d5c6f7aa.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:10650

Access Statistics for this paper

More papers in Policy Research Working Paper Series from The World Bank 1818 H Street, N.W., Washington, DC 20433. Contact information at EDIRC.
Bibliographic data for series maintained by Roula I. Yazigi ().