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Consumption Enhancing Roads

ID Minciencias: TM-0001334808-21
Ranking: TM-TM_A

Abstract:

This paper quantifies the increase in household welfare that results from reducing food prices through improvements in the road network. First, I estimate the effect of improving the road network on the price of a subset of agricultural products. Second, I estimate demand for these products using the road networkpredicted prices in an Almost Ideal Demand System. Results suggest that if the road improvements between 2014-2017 had never occurred, the price of fruits and vegetables in 2017 would have been 8% higher and households would have had to spend an additional 0.8% of their total food budget

Tópico:

Economic and Environmental Valuation

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