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Using detailed geographical and household survey data from Nepal, this article investigates the relationship between isolation and subjective welfare. This is achieved by examining how distance to markets and proximity to large urban centers are associated with responses to questions about income and consumption adequacy. Results show that isolation is associated with a significant reduction in subjective assessments of income and consumption adequacy, even after controlling for consumption expenditures and other factors. The reduction in subjective welfare associated with isolation is much larger for households that are already relatively close to markets. These findings suggest that welfare assessments based on monetary income and consumption may seriously underestimate the subjective welfare cost of isolation, and hence will tend to bias downward the assessment of benefits to isolation-reducing investments such as roads and communication infrastructure.

Air --- Consumption --- Economic Theory and Research --- Externalities --- Health Monitoring and Evaluation --- Health, Nutrition and Population --- Inequality --- Macroeconomics and Economic Growth --- Mobility --- Poverty Reduction --- Road --- Roads --- Transport --- Transport costs --- Transport Economics, Policy and Planning --- Travel time --- Travel times --- True

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In many countries, place specific investments in infrastructure are viewed as integral components of territorial development policies. But are these policies fighting market forces of concentration? Or are they adding net value to the national economy by tapping underexploited resources? This paper contributes to the debate on the spatial allocation of infrastructure investments by examining where these investments will generate the highest economic returns "spatial efficiency", and identifying whether there re tradeoffs when infrastructure coverage is made more equitable across regions "spatial equity". The empirical analysis focuses on Uganda and is based on estimating models of firm location choice, drawing on insights from the new economic geography literature. The main findings show that establishments in the manufacturing industry gain from being in areas that offer a diverse mix of economic activities. In addition, availability of power supply, transport links connecting districts to markets, and the supply of skilled workers attract manufacturing activities. Combining all these factors gives a distinct advantage to existing agglomerations along leading areas around Kampala and Jinja. Infrastructure investments in these areas are likely to produce the highest returns compared with investments elsewhere. Public infrastructure investments in other locations are likely to attract fewer private investors, and will pose a spatial efficiencyequity tradeoff. To better integrate lagging regions with the national economy, lessons from the WDR2009 "Reshaping Economic Geography" calling for investments in health and education in lagging areas are likely to be more beneficial.

Accessibility --- Agglomeration economies --- Congestion --- Congestion costs --- Equity implications --- Infrastructure --- Infrastructure development --- Infrastructure policies --- Investments --- Mobility --- Policies --- Road --- Roads --- Transport --- Transport corridors --- Transport costs --- Transport Economics, Policy and Planning --- Transport improvements --- Transport infrastructure --- Travel --- Travel times

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Using detailed geographical and household survey data from Nepal, this article investigates the relationship between isolation and subjective welfare. This is achieved by examining how distance to markets and proximity to large urban centers are associated with responses to questions about income and consumption adequacy. Results show that isolation is associated with a significant reduction in subjective assessments of income and consumption adequacy, even after controlling for consumption expenditures and other factors. The reduction in subjective welfare associated with isolation is much larger for households that are already relatively close to markets. These findings suggest that welfare assessments based on monetary income and consumption may seriously underestimate the subjective welfare cost of isolation, and hence will tend to bias downward the assessment of benefits to isolation-reducing investments such as roads and communication infrastructure.

Air --- Consumption --- Economic Theory and Research --- Externalities --- Health Monitoring and Evaluation --- Health, Nutrition and Population --- Inequality --- Macroeconomics and Economic Growth --- Mobility --- Poverty Reduction --- Road --- Roads --- Transport --- Transport costs --- Transport Economics, Policy and Planning --- Travel time --- Travel times --- True

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Distance and location are important determinants of many choices that economists study. While these variables can sometimes be obtained from secondary data, economists often rely on information that is self-reported by respondents in surveys. These self-reports are used especially for the distance from households or community centers to various features such as roads, markets, schools, clinics, and other public services. There is growing evidence that self-reported distance is measured with error and that these errors are correlated with outcomes of interest. In contrast to self-reports, the Global Positioning System (GPS) can determine almost exact location (typically within 15 meters). The falling cost of GPS receivers (typically below USD 100) makes it increasingly feasible for field surveys to use GPS as a better method of measuring location and distance. In this paper the authors review four ways that GPS can lead to better economics and better policy: (1) through constructing instrumental variables that can be used to understand the causal impact of policies, (2) by helping to understand policy externalities and spillovers, (3) through better understanding of access to services, and (4) by improving the collection of household survey data. They also discuss several pitfalls and unresolved problems with using GPS in household surveys.

Accessibility --- Air --- Aircraft --- Costs --- E-Business --- Externalities --- Health Monitoring and Evaluation --- Health, Nutrition and Population --- Infrastructure --- Policies --- Private Sector Development --- Railway --- Railway Lines --- Road --- Road Network --- Roads --- Roads and Highways --- Signals --- Training --- Transport --- Transport Economics, Policy and Planning --- Travel --- Travel Distance --- Travel Distances --- Travel Time --- Travel Times --- Urban Sprawl

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This study examines the relationship between transport infrastructure and agriculture in Sub-Saharan Africa using new data obtained from geographic information systems (GIS). First, the authors analyze the impact of road connectivity on crop production and choice of technology. Second, they explore the impact of investments that reduce road travel times. Finally, they show how this type of analysis can be used to compare cost-benefit ratios for alternative road investments in terms of agricultural output per dollar invested. The authors find that agricultural production is highly correlated with proximity (as measured by travel time) to urban markets. Likewise, adoption of high-productive/high-input technology is negatively correlated with travel time to urban centers. There is therefore substantial scope for increasing agricultural production in Sub-Saharan Africa, particularly in more remote areas. Total crop production relative to potential production is 45 percent for areas within four hours' travel time from a city of 100,000 people. In contrast, it is just 5 percent for areas more than eight hours away. Low population densities and long travel times to urban centers sharply constrain production. Reducing transport costs and travel times to these areas would expand the feasible market size for these regions. Compared to West Africa, East Africa has lower population density, smaller local markets, lower road connectivity, and lower average crop production per unit area. Unlike in East Africa, reducing travel time does not significantly increase the adoption of high-input/high-yield technology in West Africa. This may be because West Africa already has a relatively well-connected road network.

Accessibility --- Agriculture --- Climate Change and Agriculture --- Connected road network --- Crops & Crop Management Systems --- Crossing --- Economic Theory & Research --- Impact of transport --- Macroeconomics and Economic Growth --- Population densities --- Population density --- Regional Economic Development --- Road --- Road information --- Road infrastructure --- Road quality --- Road type --- Rural roads --- Transport --- Transport costs --- Transport Economics Policy & Planning --- Transport infrastructure --- Travel speed --- Travel speeds --- Travel time --- Travel times