Escobal, J. y Torero, M. (2004). Análisis de los servicios de infraestructura rural y las condiciones de vida en las zonas rurales de Perú (Informe final). Lima: GRADE.

This paper seeks to quantify the possible impact on rural households of having access to public infrastructure. This impact is evaluated both in terms of higher incomes and changes in the composition of such incomes. In particular, the paper decomposes the impact on rural household income into three effects: the “recomposition” effect, as the sources of income are modified as a result of access to new infrastructure; the effect on “employment” -total hours worked- and the “profitability” effect, as each of the income alternatives becomes more profitable. The study also analyzes the importance of the complementarities between the different types of infrastructure, both between them and between them and private asset endowments (especially education).