In Search of a Spatial Equilibrium in the Developing World

In most developing countries, there is a large gap in average consumption per capita be tween urban and rural areas. One appealing interpretation of this gap is that it reflects a spatial equilibrium, in which the higher consumption levels of urban areas are offset by lower non-monetary amenities.

Abstract

In most developing countries, there is a large gap in average consumption per capita be tween urban and rural areas. One appealing interpretation of this gap is that it reflects a spatial equilibrium, in which the higher consumption levels of urban areas are offset by lower non-monetary amenities. This paper draws on new high-resolution evidence to document how non-monetary amenities vary across space within 20 Sub-Saharan African countries. We focus on measures of public goods, crime and pollution. We find that in almost all countries, and for almost all measures, the quality of these amenities is non- decreasing in population density

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