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GTAP Resource #3116

"General equilibrium impact evaluation of road sector investment programs in Ghana"
by Jensen, Henning Tarp

The econometric treatment-response methodology has recently become a popular tool for impact evaluation of road sector programs. The application of this partial equilibrium methodology is, however, fundamentally flawed in the context of road sector programs, since they are characterized by important general equilibrium (GE) effects. The current paper develops a new GE methodology for road sector impact evaluation, which captures the main supply-side spillover effects of road sector investment and maintenance costs. The analysis is based on a dynamically recursive Computable General Equilibrium (CGE) model, which is calibrated on the basis of a recently developed 2004 Social Accounting Matrix (SAM) for Ghana (Jensen, van den Andel & Duncan; 2008). The analysis employs a structural relationship between (i) road investment and maintenance costs, (ii) vehicle operating cost (voc) savings, and (iii) transport sector productivity, in order to model the supply-side effects of road sector expenditures.

Resource Details (Export Citation) GTAP Keywords
Category: 2009 Conference Paper
Status: Published
By/In: Presented at the 12th Annual Conference on Global Economic Analysis, Santiago, Chile
Date: 2009
Version: preliminary draft version
Created: Jensen, H. (4/15/2009)
Updated: Jensen, H. (6/10/2009)
Visits: 1,419
- Economic development
- Technological change
- Dynamic modeling
- Africa (West)

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