Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/264548 
Authors: 
Year of Publication: 
2022
Citation: 
[Journal:] Papers in Regional Science [ISSN:] 1435-5957 [Volume:] 101 [Issue:] 2 [Publisher:] Wiley Periodicals, Inc. [Place:] Hoboken, USA [Year:] 2022 [Pages:] 373-397
Publisher: 
Wiley Periodicals, Inc., Hoboken, USA
Abstract: 
The effects of a rural roads programme depend on labour mobility, how the programme is financed, and agglomeration economies. If financed by a rural poll tax and cross‐price effects and agglomeration economies are sufficiently small, the wage will rise, with some return migration. Taxes on trade act as countervailing distortions, yielding urban households some relief. Rural‐urban commuting promotes the exploitation of agglomeration economies; taxes on international trade are then inferior to a poll tax. The change in the value, at producer prices, of the rural sector's net supply vector can be a poor measure of the programme's social profitability.
Subjects: 
rural roads
social profitability
transport costs
agglomeration economies
small open economy
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article
Document Version: 
Published Version

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