The Benefits of India's Rural Roads Program in the Spheres of Goods, Education and Health : Joint Estimation and Decomposition
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World Bank, Washington, DC
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All-weather rural roads usually improve
not only villagers' terms of trade, but also their
educational attainments and health. Obtaining empirical
estimates of the benefits generated by the first is
straightforward, not so those generated by the others. The
object of this paper is to estimate the relative sizes of
their respective contributions to total benefits in
connection with the all-India rural roads program Pradhan
Mantri Gram Sadak Yojana, using an overlapping generations
model featuring the production and consumption of goods and
the formation of human capital in the presence of both
morbidity and mortality. Based on survey evidence from
upland Orissa in India and Bangladesh, as well as elements
of more usual forms of calibration, the model yields a ratio
of commercial to non-commercial benefits of about two-to-one
in the first generation, falling to three-to-four in the
second. This is broadly consistent with the valuations
expressed by respondents in the Orissa survey, who ranked
the latter benefits at least on a par with the former.
Palabras clave
ADULTHOOD, AGE-GROUP, AGED, AGGREGATE SUPPLY, ALGORITHM, BENCHMARK, CAPITAL FORMATION, CHILD MORBIDITY, CLINICS, CONSTANT RETURNS TO SCALE, CONSUMERS, DEMOGRAPHIC TRANSITION, DEVELOPMENT POLICY, DIMINISHING RETURNS, DISCOUNT RATE, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, EMPIRICAL BASIS, ENDOGENOUS VARIABLES, EQUIVALENT VARIATION, EXOGENOUS VARIABLES, EXPECTED RETURNS, EXPECTED UTILITY, EXPENDITURES, FAMILIES, FATALITY, FATALITY RATES, FORECASTS, FUNCTIONAL FORMS, GROWTH RATE, HEALERS, HEALTH CARE, HOSPITALS, HUMAN CAPITAL, INCOME, INCREASE IN MORTALITY, INJURY, INSPECTION, LIVING STANDARDS, MACROECONOMICS, MEDICAL TREATMENT, MORBIDITY, MORTALITY, MORTALITY RATE, OLDER CHILDREN, OPPORTUNITY COST, OPPORTUNITY COSTS, OVERLAPPING GENERATIONS MODEL, POLITICAL ECONOMY, PREMATURE DEATH, PRESENT VALUE, PRIVATE GOODS, PRODUCERS, PRODUCTIVITY, PURCHASING POWER, ROAD, ROUTE, RURAL ROADS, SIBLINGS, SOCIAL NORMS, TERMS OF TRADE, TRANSFER PAYMENTS, TRANSPORT, TRANSPORT COSTS, TRANSPORTATION, TRIP, TRIP TIME, UTILITY FUNCTION, UTILITY FUNCTIONS, VALUE OF OUTPUT, WAGE DIFFERENTIALS, WAGE RATES, WILLINGNESS TO PAY, YOUNG ADULT, YOUNG ADULTS