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Benefits of South Africa's reforms extend beyond its borders
Migration, congestion externalities, and the evaluation of spatial investments
Evaluations of new infrastructure in developing countries typically focus on direct effects, such as the impact of an electrification program on household energy use. But if new infrastructure induces people to move into an area, other local publicly provided goods may become congested, offsetting the benefit of the infrastructure. We use a simple model to show how to measure the net benefit of a place-based program without data on land prices?an indicator that is commonly used to measure congestion in developed countries but that often cannot be used in poor countries because land markets ...