In Search of a Spatial Equilibrium in the Developing World

Douglas Gollin

Martina Kirchberger

David Lagakos

Oxford

Trinity College Dublin

UCSD and NBER

April 5, 2017

0 / 64

Large Rural-Urban Income Gaps in Developing World

1 / 64

Large Rural-Urban Income Gaps in Developing World

• Value added per worker (Gollin, Lagakos and Waugh, 2014)

• Consumption measures (Young, 2014)

• Wages (Herrendorf and Schoellman, 2015)

1 / 64

Large Rural-Urban Income Gaps in Developing World

• Value added per worker (Gollin, Lagakos and Waugh, 2014)

• Consumption measures (Young, 2014)

• Wages (Herrendorf and Schoellman, 2015)

• Important role in accounting for income differences across countries

• Developing countries have low income largely b/c they employ most of

their workers in the least productive activities/areas • Restuccia, Yang, Zhu (2008); Vollrath (2009); McMillan & Rodrik (2011)

1 / 64

Appealing Explanation: Spatial Equilibrium

• Assumption: utility equalized across regions (Rosen, 1979; Roback, 1982)

• If not, people would have moved

• Implication: higher consumption but lower amenities in urban areas

• Almost every paper with a spatial equilibrium: amenities backed out of

structural model, not measured directly

2 / 64

Very Incomplete List of Papers Assuming a Spatial Equilibrium

• Baum-Snow and Pavan (2012) and Desmet and Rossi-Hansberg (2013) on

U.S. city wage and size distribution • Desmet and Rossi-Hansberg (2014) on dynamics of U.S. manufacturing

• Allen and Arkolakis (2014) on welfare impacts of transportation

infrastructure • Glaeser & Gottlieb (2009) on agglomeration economies in U.S.

• Bryan and Morten (2014) on spatial misallocation of labor in Indonesia

• Ahlfeldt, Redding, Sturm, Wolf (2015) on fall of Berlin wall

3 / 64

What We Do • Go searching for spatial equilibrium in 20 African countries • Link 2005 Demographic & Health Surveys (DHS) and other data to

population data from Gridded Population of the World (GPW) • Measure how consumption and amenities vary with population density

within each country • Measures of durable goods, housing quality, child health, indoor air

pollution from DHS • Outdoor air pollution using satellite-derived data • Crime data from Afrobarometer, Living Standards Measurement Surveys • Internal migration data from DHS 4 / 64

What We Find

• Almost all metrics, in almost all countries, constant or increasing in

population density • True even within people of similar education levels

• Migration is on net to cities and large in magnitude

• Hard to reconcile with spatial equilibrium

5 / 64

What We Find

• Almost all metrics, in almost all countries, constant or increasing in

population density • True even within people of similar education levels

• Migration is on net to cities and large in magnitude

• Hard to reconcile with spatial equilibrium

• Easier story: residents of developing world moving toward cities since offer

better living conditions on average • Of course, looking for something and not finding it doesn’t prove its not

there – we can’t provide proof of non-existance 5 / 64

Simple Model

6 / 64

Model Environment

• Economy divided into J regions • Identical households with preferences: U(c, h, a) I I I I

consumption, c housing, h amenities, a strictly increasing in all three

• Households mobile, choose where to locate • Three characteristics of each region: I I I

wage, wj housing price, pj amenities, aj

• Household budget constraint: wj = c + pj h

7 / 64

Spatial Equilibrium

• Assumption: utility equated across regions; common utility value ≡ u¯

8 / 64

Spatial Equilibrium

• Assumption: utility equated across regions; common utility value ≡ u¯

• Basic property I: For any regions j and k, if cj > ck , then either hj < hk or

aj < ak or both

8 / 64

Spatial Equilibrium

• Assumption: utility equated across regions; common utility value ≡ u¯

• Basic property I: For any regions j and k, if cj > ck , then either hj < hk or

aj < ak or both • Basic property II: For any regions j and k, households do not prefer to

migrate from j to k or vice versa

8 / 64

Spatial Equilibrium

• Assumption: utility equated across regions; common utility value ≡ u¯

• Basic property I: For any regions j and k, if cj > ck , then either hj < hk or

aj < ak or both • Basic property II: For any regions j and k, households do not prefer to

migrate from j to k or vice versa • Typical approach: go with these assumptions, back out amenities from

model • We will look at direct measures of cj , hj and aj

8 / 64

Spatial Equilibrium: Role of Housing Prices

• “Aren’t housing prices higher in cities? Couldn’t this mean aj = ak ?”

9 / 64

Spatial Equilibrium: Role of Housing Prices

• “Aren’t housing prices higher in cities? Couldn’t this mean aj = ak ?”

• Say j is the city, and wj > wk but pj > pk

9 / 64

Spatial Equilibrium: Role of Housing Prices

• “Aren’t housing prices higher in cities? Couldn’t this mean aj = ak ?”

• Say j is the city, and wj > wk but pj > pk • In a spatial equilibrium, two possibilities

9 / 64

Spatial Equilibrium: Role of Housing Prices

• “Aren’t housing prices higher in cities? Couldn’t this mean aj = ak ?”

• Say j is the city, and wj > wk but pj > pk • In a spatial equilibrium, two possibilities 1

Could be: cj > ck but hj < hk ; household gets worse housing

9 / 64

Spatial Equilibrium: Role of Housing Prices

• “Aren’t housing prices higher in cities? Couldn’t this mean aj = ak ?”

• Say j is the city, and wj > wk but pj > pk • In a spatial equilibrium, two possibilities 1

Could be: cj > ck but hj < hk ; household gets worse housing

2

Could be: cj < ck but hj > hk ; household gets worse consumption

• ⇒ higher housing prices in cities not enough to conclude that there must

be a spatial equilibrium; need to look at quantities, which is what we do

9 / 64

0

15

16

17

Utility

18

Consumption/Amenities 5 10

19

15

20

Consumption, Amenities and Utility in Spatial Equilibrium

0

2 Consumption

4 6 Population Density Amenities

8

10 Utility

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Data

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Data • Household-level data from Demographic and Health Surveys (DHS) I

Nationally representative surveys, consistent methodology

I

Use all 2005 DHS surveys with available GPS coordinates for survey clusters

I

276,000 households from 20 countries

• Satellite-derived measures of air pollution data • Crime data from Afrobarometer surveys and Living Standards

Measurement Surveys (LSMS) • Data on population density measures from Gridded Population of the

World (GPW) I

Resolution of ∼ 1km at equator

I

Based on census data; minimal amount of modeling

I

Restrict attention to countries with sufficiently high spatial detail

12 / 64

Countries Studied, DHS Samples and Populations Country

Households in Sample

Country Population

Benin Burkina Faso Cameroon Dem. Republic of Congo Ethiopia

17,332 13,617 14,189 16,344 16,037

10,050,702 16,460,141 21,699,631 65,705,093 91,728,849

Ghana Ivory Coast Kenya Liberia Madagascar

11,574 9,394 9,033 9,333 17,578

25,366,462 19,839,750 43,178,141 4,190,435 22,293,914

Malawi Mali Mozambique Nigeria Senegal

24,210 10,105 13,899 38,170 7,780

15,906,483 14,853,572 25,203,395 168,800,000 13,726,021

Sierra Leone Tanzania Uganda Zambia Zimbabwe

12,629 9,282 8,939 7,164 9,442

5,978,727 47,783,107 36,345,860 14,075,099 13,724,317

Total

276,051

769,082,846 13 / 64

Linking DHS Data to Density

• DHS clusters are assigned an approximate GPS location (randomly

displaced by small amounts to provide anonymity to respondents) I

Urban clusters are randomly displaced in the data by 0-2 km

I

Rural clusters are randomly displaced in the data by 0-5 km, with 1% of clusters randomly selected to be displaced by 10 km

• We take 5 km buffers around both urban and rural clusters and compute

average population density across the buffer. I

Insures that we capture the actual cluster but also nearby areas.

• The density distribution that we achieve is quite similar to what we would

get from census data. I

We may miss the extreme tails of the density distribution by averaging.

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Example: DHS Clusters in Dar Es Salaam, Tanzania

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.4 0

0

.1

Frequency of census EAs .2 .3

Frequency of DHS Households .1 .2 .3

.4

Distribution of Densities in Tanzania Census and DHS

0

4 8 Log of population density

0 12

4 8 Log of population density

12

→ Correlation between GPW density estimates and census estimates of population density is 0.93 with a p-value of 0.000.

16 / 64

Kernel density .2 .4 .6 0

0

Kernel density .2 .4 .6

Distribution of Population Density in Select Countries

0

2

4 6 8 Log of population density

2

4 6 8 Log of population density Mali

Kernel density .2 .4 .6

Malawi

10

0

0

2 4 6 8 Log of population density Mozambique

10

0

Nigeria

2

4 6 8 Log of population density Senegal

10

Sierra Leone

.6

0

.6

0

Madagascar

Kernel density .2 .4 .6

Liberia

10

17 / 64

DHS Urban/Rural Classifications – Often Not Reliable

BurkinaFaso

Cameroon

DRC

Ethiopia

Ghana

IvoryCoast

Kenya

Liberia

Madagascar

Malawi

Mali

Mozambique

Nigeria

Senegal

SierraLeone

Tanzania

Uganda

Zambia

Zimbabwe

.4 .2 0 .6 .4 .2 0 .6 .4 .2 0

Kernel density

.6

0

.2

.4

.6

Benin

0

2

4

6

8

10

0

2

4

6

8

10

0

2

4

6

8

10

0

2

4

6

8

10

0

2

4

6

8

10

Log of population density Rural

Urban 18 / 64

Urban-Rural Density Distributions

• Urban and rural densities are not as distinct as one might expect. • In a number of countries, there is substantial overlap when administrative

definitions are applied. • Frequently used “urban-rural” dichotomy may be flawed for some

purposes: I

Not necessarily very precise if we are thinking about urbanization in terms of population density, market thickness, agglomeration externalities.

I

Still useful, however, for thinking about some characteristics that are linked to administrative classifications; e.g., public service provision?

19 / 64

Durables Ownership

20 / 64

Telephone Ownership by Population Density

.2

.4

Phone .6

.8

1

Phone ownership in Ethiopia, Nigeria, Senegal and Tanzania

2

4 Ethiopia

6 Log of population density Nigeria

Senegal

8

10 Tanzania

21 / 64

Telephone Ownership by Population Density

0

.2

.4

Phone

.6

.8

1

Phone ownership in entire sample

2

4

6 Log of population density

8

10

22 / 64

Durables Ownership Differences by Density Quartiles

Differences From Q1

Telephone

Television

Automobile

Motorcycle

Q2

Q3

Q4

Regional Std. Dev

0.07

0.20

0.43

0.47

14

18

20

0.03

0.16

0.46

15

18

20

0.00

0.02

0.09

6

15

20

-0.01

-0.01

0.00

8

13

14

0.41

0.18

0.26

23 / 64

Durables-Density Gradients

• Durable ownership clearly increasing in population density • This is clearly counted in consumption and income, so consistent with

previous studies • Not a contribution per se, but frame of reference for other metrics,

confirmation of previous conclusions in literature about income

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Housing Quality

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1

Percent with Finished Roof and Finished Walls

Lowest Density Quartile .4 .6 .8

BEN

CMR GHA NGA ZWE CIV SLE

MWI CMR

GHA ZMB KEN BEN ETH BFA MDG MDG

.2

BFA

SLE

MWI COD MOZ ETH

CIV SEN MLI LBR SEN NGA ZWE

MOZ COD MLI LBR

ZMB

0

KEN

0

.2

.4 .6 Highest Density Quartile Finished roof

.8

1

Finished Wall

26 / 64

Lowest Density Quartile .4 .6 .8

1

Percent with Flush Toilet and Electricity

CMR GHA NGA SENCIV

.2

BEN ETH

CMR MOZ

NGA SEN MDG GHA ZMB CIV UGA COD TZA TZA ZMB LBR BFA KEN SLE

ZWE

MLI MOZ KEN

ZWE

0

MLI MWI ETH LBR BEN MDG COD SLE MWI BFA UGA

0

.2

.4 .6 Highest Density Quartile Flush toilet

.8

1

Electricity

27 / 64

Housing Quality Differences by Density Quartile Differences From Q1 Q2

Q3

Q4

Regional Std. Dev

0.03

0.19

0.51

0.41

16

17

20

0.02

0.21

0.51

12

18

20

0.04

0.19

0.48

13

17

20

Flush toilet

0.01

0.09

0.28

14

17

20

Water collection (min)

-4.1

-7.8

-16.4

11

16

18

0.09

0.26

0.48

16

18

17

Electricity

Tap water

Constructed floor

Finished roof

0.44

0.46

0.28

35.01

0.44

28 / 64

Housing Quality

• Housing quality much higher in urban areas

• True for just about every country, metric

• Put together with consumption data, must now be that amenities

increasing in density for spatial equilibrium to hold

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Child Health

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Child Health

• Child health measures functions of consumption (food) and also amenities

(health facilities, public health provision more generally) • Percent anemic

• Percent consuming below minimum acceptable diet

• Stunted: low height for age

• Wasted: low weight for height

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Percent Anemic and Below Minimum Acceptable Diet

1

MDG ETH BFA SLE CMR UGA MLICIV ZWE SEN LBR NGA COD TZA BFA

Lowest Density Quartile .6 .8

GHA KEN MWI MLI SLE GHA ZMB CIV

BEN

MOZ

SEN

MWI CMR MOZ COD BEN

MDG

ZWE

TZA

ETH

.4

UGA

.4

.6 .8 Highest Density Quartile Anemic

1

Below minimum acceptable diet

32 / 64

.6

Child Health: Percent Stunted and Wasted

BEN MWI

Lowest Density Quartile .2 .4

MLI

CMR

BFA NGA CIV

TZA MOZCOD SLE KEN

ZMB

ETH MDG

UGA SEN GHA

BEN

MDG BFA

NGA

MLI

0

ETH KEN SEN GHA COD CIVSLE MOZ CMR ZMB LBR TZA ZWEMWIUGA

ZWE LBR

0

.2 .4 Highest Density Quartile Stunted

.6

Wasted

33 / 64

Child Health Differences by Density

Differences From Q1

Anemic

Stunted (low height for age)

Wasted (low height for weight)

Below minimum diet

Q2

Q3

Q4

Regional Std. Dev

-0.003

-0.041

-0.080

0.453

1

6

11

0.010

-0.017

-0.106

4

7

15

-0.005

-0.015

-0.022

4

7

8

-0.013

-0.027

-0.053

3

3

9

0.479

0.282

0.276

34 / 64

Child Health – Summary

• Child health (depressingly) poor on average

• But at least as good if not better on average in cities

• Probably reflects better consumption (diet) and better access to public

health facilities and programs • No attempt here to distinguish effects of diet and public health; very

important, not necessary for our purposes

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Pollution

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Pollution Variables

• Satellite data on outdoor air pollution at ground level I

Van Donkelaar et al (2015, 2016): Fine particulate matter (PM2.5)

I

Geddes et al (2015): Nitrogen Dioxide (NO2)

• DHS evidence on indoor air pollution I

Uses solid fuel source (wood, coal), and

I

Primarily cooks indoors

• Clear negative links of long-term exposure to health – literature enormous

(Pope & Dockery, 2006: meta analysis of meta analyses)

37 / 64

PM2.5 Concentrations in Nigeria (µg /m3 )

PM2.5

PM2.5 5 - 16 17 - 20 21 - 26 27 - 32 33 - 35 36 - 38 39 - 41 42 - 45 46 - 54 55 - 110

38 / 64

PM2.5 Concentrations in Nigeria – Excluding Dust

PM2.5 (Dust and Sea Salt removed)

PM2.5 0.5 - 5.3 5.4 - 6.0 6.1 - 6.6 6.7 - 7.2 7.3 - 7.9 8.0 - 8.5 8.6 - 9.3 9.4 - 10.1 10.2 - 11.2 11.3 - 20.5

39 / 64

Population Density in Nigeria

Population Density

12 - 32 33 - 47 48 - 60 61 - 73 74 - 91 92 - 121 122 - 151 152 - 216 217 - 349 350 - 19841

40 / 64

10

PM2.5 (micrograms per cubic meter) 20 30

40

PM2.5-Density Gradient in Nigeria

3

4 PM2.5

5 Log of population density

6

7

PM2.5 (dust and sea salt removed)

41 / 64

50

PM2.5 vs Density in all Countries

Lowest Density Quartile 20 30 40

NER

BEN

NGABFA

MLI SEN

GHA CIV TGO

SLE LBR CMR

0

10

GHA NGA TGO ZMB ZMB UGA BEN CIV CMR MWI UGA MWI BFA ZWE TZA KEN ZWE TZA LBR SEN SLE MOZ MOZ KEN NER MLI MDG MDG

0

10

20 30 Highest Density Quartile

PM2.5 Dust and sea salt removed

40

50

PM2.5

42 / 64

6

6.5 7 PM25 (micrograms/cubic meter) U.S.

7.5

PM25 (micrograms/cubic meter) India and China 0 20 40 60 80

PM2.5 vs Density in China, India and United States

2 China

4 Log of population density India

6 United States

43 / 64

NO2 vs Density in all Countries .5

TGO

Lowest Density Quartile .2 .3 .4

GHA

BEN SEN

NGA

BFA

CIV SLE ZWE UGA ZMB MWI MOZ TZA MDG

CMR KEN

MLI

.1

LBR

0

NER

0

.1

.2 .3 Highest Density Quartile

.4

.5

NO2

44 / 64

1

1.5 2 2.5 NO2 (micrograms/cubic meter) U.S.

3

NO2 (micrograms/cubic meter) India and China 0 2 4 6 8 10

NO2 vs Density in China, India and United States

2 China

4 Log of population density India

6 United States

45 / 64

1

Indoor Air Pollution vs Density

MLI MDG

ZWE

Lowest Density Quartile .4 .6 .8

SLE MDG LBR MLI ETH MWI MOZ COD BEN TZA UGA BFA

CIV ZMB GHA

KEN SEN NGA KEN CMR

ZWE

SEN NGA CMR GHA CIV

ETH

LBR MOZ SLE

BEN

0

.2

BFA

ZMB

UGA COD

MWI

0

.2

.4 .6 Highest Density Quartile

.8

1

Solid source of cooking fuel Solid source of cooking fuel x cooking indoors

46 / 64

Pollution Differences by Density Quartile

Differences From Q1

Nitrogen Dioxide

PM2.5

Cook inside with solid fuel

Q2

Q3

Q4

Regional Std. Dev

0.006

-0.007

0.002

0.085

11

13

12

-0.57

-1.30

-1.09

10

11

11

0.01

-0.05

-0.24

13

16

19

6.63

0.47

47 / 64

Pollution Variables – Summary

• Outdoor air pollution largely related to proximity to Sahara

• ...not population density

• Commentary on Africa’s under-developed manufacturing sector

• Indoor air pollution improves on average with density

• Caveat: Africa clearly different from India and China

• Still, biggest rural-urban income gaps in Africa, so simple theory of

pollution offsetting higher income in developing world hard to tell

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Crime

49 / 64

Crime Variables • Main crime variables from Afrobarometer

• Matching clusters to density data more complicated – see paper

50 / 64

Crime Variables • Main crime variables from Afrobarometer

• Matching clusters to density data more complicated – see paper

• Property crime: “Over the past year, how often (if ever) have you or

anyone in your family had something stolen from your house?” • Violent crime: “... been physically attacked?”

• Fear of crime: “... feared crime in your own home?”

• Feel unsafe in neighborhood: “... felt unsafe walking in your

neighborhood?”

50 / 64

Crime Variables • Main crime variables from Afrobarometer

• Matching clusters to density data more complicated – see paper

• Property crime: “Over the past year, how often (if ever) have you or

anyone in your family had something stolen from your house?” • Violent crime: “... been physically attacked?”

• Fear of crime: “... feared crime in your own home?”

• Feel unsafe in neighborhood: “... felt unsafe walking in your

neighborhood?” • Use also non-standardized crime variables from LSMS 50 / 64

Lowest Density Quartile .2 .4

.6

Property Crime and Violent Crime

CMR

LBR

UGA

MWI NGA TZA TGO GHA MLI NGAUGA MDG ZMB ZWE SLE SEN BFA MOZ MWI MDG TZA GHA BEN MLI TGO CIV

ZMB MOZ KEN

ZWE SEN

SLE

BFA

BEN

KEN NER CMR

CIV LBR

0

NER

0

.2 .4 Highest Density Quartile Property crime

.6

Violent crime

51 / 64

Lowest Density Quartile .2 .4 .6

.8

Fear of Crime

MDG KEN UGA MWI

KEN

CMR

SEN

BFA ZMB MLI TZA ZWE MWI MDG ZMBMOZ UGA ZWE MOZCMR CIV NGA BFA NGA TGOCIV LBR MLI SLE SEN TGO GHA GHA BEN SLE BEN NER TZA

LBR

0

NER

0

.2

.4 Highest Density Quartile

Feel safe in neighborhood

.6

.8

Fear of crime

52 / 64

Crime by Density Quartile

Population Density Quartile

Property Crime

Violent Crime

Fear of Crime

Feel unsafe

Q1

Q2

Q3

Q4

0.29

0.31

0.31

0.33

-

6

4

6

0.10

0.09

0.10

0.12

-

2

2

5

0.32

0.33

0.34

0.37

-

4

5

8

0.37

0.38

0.38

0.44

-

4

5

8

53 / 64

Crime Data in LSMS Surveys – Similar Picture, Less Comparable Data Malawi Anything stolen, personal attack

0

.4 .42 .44 .46 .48

.01 .02 .03

Ethiopia Theft, robbery, other violence

2

4 6 8 Log of population density

10

2

4 6 8 Log of population density

Tanzania Anything stolen/personal assault

0

.05

.1

.15

.2

.02 .04 .06 .08

Nigeria Theft/kidnapping/hijacking/robbery/assault

10

2

4 6 8 Log of population density

10

2

4 6 8 Log of population density

10

Uganda .02 .04 .06 .08 .1 .12

Theft/violence/conflict

2

4 6 8 Log of population density

10

54 / 64

Crime Variables – Summary

• Best evidence so far of negative amenities of cities

• Still, magnitudes small relative to size of urban-rural gap

• Bishop, Murphy (2011): San Francisco residents willing to pay $472 to

avoid 10% increase in violent crime; $472 / $57,276 = 0.8% of income • Cohen et al (2001): US residents in 2000: willing to pay $120 to reduce

chance of armed robbery by 10%; $120 / $34,432 = 0.4% of income • Ludwig and Cook (1998): US households in 1998 willing to pay $240 per

year to reduce chance of gunshot injury by 30%; $240 / $51,939 = 0.5% of income

55 / 64

Density Gradients by Education Groups

56 / 64

0

.2

Electricity .4 .6

.8

1

Electricity in Nigeria by Education Group

4

5

6 7 Log of population density

8

9

.1 .05 0

Fraction

.15

Histogram of hh heads with complete secondary or more schooling

Log of population density

.1 .05 0

Fraction

.15

Histogram of hh heads with complete primary and incomplete secondary schooling

Log of population density

.15 .1 .05 0

Fraction

.2

Histogram of hh heads with no or incomplete primary schooling

Log of population density

57 / 64

Slope coefficients 0.00 0.05 0.10 0.15 0.20

Slopes by Education Group

(a) Gradients for hh heads with no or incomplete primary schooling

electricity

floor

phone

roof

toilet

tv

wall

water

group

Slope coefficients 0.00 0.05 0.10 0.15 0.20

(b) Gradients for hh heads with at least primary schooling

electricity

floor

phone

roof

toilet

tv

wall

water

group

58 / 64

Internal Migration

59 / 64

Rural-Urban and Urban-Rural Migrants as Percent of Adults

Rural-to-Urban

Urban-to-Rural

Difference

Percent of Adults Dem. Republic of Congo (2007)

5.72

0.41

5.31∗∗∗

Ethiopia (2005)

5.19

0.46

4.73∗∗∗

Ghana (2008)

9.08

2.46

6.62∗∗∗

Kenya (2008-09)

11.03

1.72

9.31∗∗∗

Liberia (2007)

6.28

4.90

1.38∗∗∗

Madagascar (2008-09)

4.72

0.62

4.10∗∗∗

Malawi (2010)

5.08

1.41

3.68∗∗∗

Mali (2006)

5.52

1.60

3.92∗∗∗

Nigeria (2008)

7.31

1.94

5.37∗∗∗

Senegal (2005)

6.68

2.41

4.27∗∗∗

Sierra Leone (2008)

8.76

1.75

7.01∗∗∗

Zambia (2007)

14.00

2.03

11.96∗∗∗

60 / 64

Conclusion • We searched for a spatial equilibrium in 20 African countries

• Consumption and most amenities increasing in population density, at least

among “prime suspects” • Net migration is to the city in every country

• Hard to reconcile with a spatial equilibrium

• Easier explanation: households vote with feet, move to cities, which offer

higher consumption and at least as good amenities if not better • Dangerous to infer amenities assuming static spatial equilibrium on

cross-sectional data from developing world

61 / 64

Extra Slides

62 / 64

.8

Lack of Medicine and Food

TGO

SEN

Lowest Density Quartile .2 .4 .6

SLE

MDG ZWE CIV

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UGA BFA BEN LBR MDG LBR BFA CMR ZMB MWI KEN MWI TZA KEN UGA MLI MLI NGA ZMB TZAMOZ MOZ NGA

NER

NER

TGOCIV

CMR

BEN

GHA

0

GHA

0

.2

.4 Highest Density Quartile

Lack of medicines

.6

.8

Lack of food

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Trust Anyone, Trust Relatives

1

NER SEN CIV TGO TZA MLI BFAMWI ZWE MOZ GHA CMR UGA SLE MDG ZMBKEN

Lowest Density Quartile .4 .6 .8

BEN NGA LBR

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BEN BFA

MDG

SEN MLI

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ZWE LBR NGA UGATGO CMR MOZ GHA MWI CIV TZA ZMB KEN

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.4 .6 Highest Density Quartile Anyone

.8

1

Relatives

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In Search of a Spatial Equilibrium in the Developing ...

Apr 5, 2017 - Differences From Q1. Q2. Q3. Q4. Regional Std. Dev. Electricity. 0.03 0.19. 0.51. 0.41. 16. 17. 20. Tap water. 0.02 0.21. 0.51. 0.44. 12. 18. 20.

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