Quantifying Spatial Mislocation in Centrally Provided Public Goods

In this paper they show how an optimization algorithm can be used to approximately quantify the costs to users of spatial misallocation in centrally provided public goods. This method can be employed to evaluate the large programs of public good construction that have been central features of economic plans in many developing countries. They apply these methods to the allocation of post-offices in an administrative block of South India between1981-1991and find that more appropriate choices for post office locations could have reduced aggregate costs of travel to citizens in this area by at least20%. [Working Paper No. 148]