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Agricultural industries --- -Agriculture --- -Agriculture and state --- -Academic collection --- 338.43 <691> --- Agrarian question --- Agricultural policy --- Agriculture --- State and agriculture --- Economic policy --- Land reform --- Farming --- Husbandry --- Industrial arts --- Life sciences --- Food supply --- Land use, Rural --- Agribusiness --- Industries --- Deregulation --- -Economic aspects --- -Environmental aspects --- -Landbouweconomie--Madagaskar --- Government policy --- Madagascar --- Economic policy. --- Agriculture and state --- Social Sciences and Humanities. Agricultural Economics --- Economic aspects --- Environmental aspects --- Agricultural Policy --- Agricultural Policy. --- 338.43 <691> Landbouweconomie--Madagaskar --- Landbouweconomie--Madagaskar --- Academic collection --- Madagaskar --- Democratic Republic of Madagascar --- Repoblika Demokratika n'i Madagaskar --- Repoblika Demokratika Malagasy --- République démocratique de Madagascar --- RDM --- Repoblikan'i Madagasikara --- République de Madagascar --- Repoblikan'i Madakasikara --- Madagasikara --- Republic of Madagascar --- マダガスカル --- Madagasukaru --- מדגסקר --- Malagasy Republic

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Domestic trade --- Agronomy --- Bandundu [province]

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Despite large amounts invested in rural roads in developing countries, little is known about their benefits. This paper derives an expression for the willingness-to-pay for a reduction in transport costs from the canonical agricultural household model and uses it to estimate the benefits of a hypothetical road project. Estimation is based on novel cross-sectional data collected in a small region of Madagascar with enormous, yet plausibly exogenous, variation in transport cost. A road that essentially eliminated transport costs in the study area would boost the incomes of the remotest households-those facing transport costs of about USD 75/ton-by nearly half, mostly by raising non-farm earnings. This benefit estimate is contrasted to one based on a hedonic approach.

High transport --- Infrastructure investment --- Road --- Road improvement --- Road projects --- Rural infrastructure --- Rural roads --- Transport --- Transport Costs --- Transport Economics, Policy and Planning --- Transport infrastructure