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...
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2023/12/11
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Report
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188724
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1
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2024/03/28
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Disclosed
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Spatial Misallocation of Complementary Infrastructure Investment : Evidence from Brazil
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