Attend Spring Meetings on Development topics from Apr 17-21. Comment and engage with experts. Calendar of Events

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Submitted by Bingjie on
Hi Adam, thanks for your comments! Yes, the benefit from improved infrastructure and logistics will depend on the assumption of some positive spillover effects. Of course we need to bear in mind that Wal-Mart makes the investment for its own profit, but there could be some technology/knowledge spillovers. Fully agree with your point on barganing power and the share of consumer surplus vs. producer surplus. The distrution is rarely equally distributed, which is not surprising. We are not assuming equal benefits among different socio-economic groups. However, the distributional impact may be important for policy makers to consider. Again we agree with you on the vast differences btw India and the US. Perhaps you could share with us some insights from your experience.