Do urban agglomeration economies enhance the social profitability of rural roads? When all goods are traded at parametric world prices, lower transport costs benefit villagers. Urban activities and welfare are unaffected if labour is immobile, but...
In the presence of agglomeration economies, the effects of a rural roads programme depend not only on the reduction in transportation costs, but also on the form of labour mobility. When financed by a poll tax on rural households, the wage will rise...
The effects of a rural roads programme depend on labour mobility, how the programme is financed, and agglomera-tion economies. If financed by a rural poll tax and cross-price effects and agglomeration economies are sufficiently small, the wage will...
The structure employed is a small open economy, with one city and a rural hinterland, two traded goods, a transport sector, two specific factors, and mobile labour. A socially profitable programme will promote not only internal, but also external...
Join the network
