Quantifying spatial misallocation in centrally provided public goods

Type Working Paper - Economics Letters
Title Quantifying spatial misallocation in centrally provided public goods
Author(s)
Volume 98
Issue 2
Publication (Day/Month/Year) 2008
Page numbers 201-206
URL http://www.isibang.ac.in/~athreya/Research/misallocation.pdf
Abstract
We use an optimization algorithm to solve a two-period planner's problem of spatially allocating public goods. We apply the algorithm to data on the location of post offices in South India between 1981–1991 and show that more appropriate choices could have reduced travel costs by at least 20%.

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