Role of Infrastructure in Organizing Space

.title[
# Role of Infrastructure in Organizing Space
]
.author[
### <img src="images/cover4_png.png" /><br><br> Dr. Kumar Aniket
]
.date[
### <rr>10 October 2023</rr>
]

---

# econversation.github.io

---

# Space

&nbsp;

### <rr>Markets</rr>

&nbsp;

# Infrastructure

---

# Infrastructure

&nbsp;

## Definition

---

.emob.fs150[Infrastructure]

]

.pull-right.fs120.right-align[

---

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<img src="images/new/ngram1.png" width="100%" style="display: block; margin: auto;" />
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<img src="images/new/ngram2.png" width="100%" style="display: block; margin: auto;" />
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---

### ONS, May 2022

.tack[
There is currently .emob[no universally agreed upon definition of infrastructure] in either the UK's National Accounts, or the international guidance embodied in the [System of National Accounts: SNA 2008](https://unstats.un.org/UNSD/nationalaccount/sna2008.asp) and the [European System of Accounts: ESA 2010](http://ec.europa.eu/eurostat/web/esa-2010).
]

- functional definition

- narrowly defined **economic infrastructure**, namely *transport*, *energy*, *water* and *waste handling assets*, *digital communications*, *mining* and *quarrying*, and other

- Neither *housing* nor *social infrastructure* (such as the *education*, *health* and *care systems*) are included

.footnote[
ONS (May 2022) Infrastructure in the UK, investment and net stocks. | [Link](https://www.ons.gov.uk/economy/economicoutputandproductivity/productivitymeasures/articles/developingnewmeasuresofinfrastructureinvestment/may2022).
]

---

.pull-left.emgr.fs80.tack[

The basic physical and organisational structures and facilities (buildings, roads, power supplies) needed for operation of a .emob[society] or enterprise: the social and economic infrastructure of a country.

&nbsp;

Physical components of .emob[interrelated systems] providing commodities and services essential to enable, sustain, or enhance .emob[societal living conditions]

&nbsp;

Infrastructure as the network of assets where the .emob[system] as a whole is intended to be maintained indefinitely at a .emob[specified standard] of service by the continuing replacement and refurbishment of its components.

]

.pull-right.emgr.fs80.tack[

Infrastructure is the set of fundamental facilities and systems that support the .emob[sustainable functionality] of households and firms.

&nbsp;

Hard infrastructure refers to the .emob[physical networks] necessary for the functioning of a modern industry. This includes roads, bridges, and railways.

&nbsp;

Soft infrastructure refers to all the .emob[institutions] that maintain the economic, health, social, environmental, and cultural .emob[standards] of a country. This includes educational programs, official statistics, parks and recreational facilities, law enforcement agencies, and emergency services.
]

---

.pull-left.emgr.fs80[

.tack[
.emkb[Gramlich (1994)]<br>
definition that makes most sense from an economics standpoint consists of a .emob[large capital intensive natural monopolies] such as highways other transportation facilities, water and sewer lines and communication systems. Most of these are publicly owned by some are owned privately. An alternative version that focuses on .emob[ownership] includes just the tangible .emob[capital stock] owned by the .emob[public sector]. Broader versions include successively human capital investment and/or research and development capital.]

.tack[
.emkb[Torrisi (2009)]<br> originated by investment expenditure and is characterised by .emob[long duration], .emob[technical indivisibility] and a .emob[high capital output ratio].
]

]

.pull-right.emgr.fs80[

.tack[
.emkb[Goldsmith (2015)]<br> infrastructure provides lasting .emob[public service] in a .emob[specific location].
]

.tack[
.emkb[Page Pande (2018)]<br> We conceive of invisible infrastructure as the .emob[social] and .emob[human systems] that enable citizens to realize their .emob[capabilities] and .emob[escape poverty]. This comprises traditional elements of social infrastructure like health care and education but also, importantly, the .emob[incentive] and information structures that bring the .emob[actions] of those who .emob[control resources] in line with the .emob[needs of the poor].
]

]

---

.footnote[
Aschauer, David Alan. "Is public expenditure productive?." Journal of monetary economics 23.2 (1989): 177-200.

L. Page and R. Pande. Ending global poverty: Why money isn’t enough. Journal of Economic Perspectives, 32(4):173–200, 2018.

Goldsmith, Hugh. "Actors and innovations in the evolution of infrastructure services." The Economics of Infrastructure Provisioning (2015): 23-91.

Gramlich, E. M. Infrastructure investment: A review essay. Journal of economic literature, 32(3):1176– 1196, 1994.

Torrisi, Gianpiero. "Public infrastructure: definition, classification and measurement issues." Economics, Management, and Financial Markets 4.3 (2009): 100-124.

]

---

# Market

&nbsp;

## Kerala Fish Market

---

# Coastal Fish Market in Kerala

Fish is the staple diet in Kerala, India

Kerala has a long coastline with fish markets dotted along the coast

Fisherman have a .emob[choice] of which fish market they land their fish in

They do not .emob[know] the .emob[price of fish] in each market on a particular day

]

.pull-right.tack.mygrapha[
<img src="images/lec3/kerala.jpg" width="100%" style="display: block; margin: auto;" />
]

---

# Kerala Fish Market

Jenson (2007) studied of .emob.fs120[15 fish markets] along the 225 km .emob.fs120[Northern coast of Kerala] to understand whether the market for fish was working.

.footnote[
Jensen, Robert (2007). The digital provide: Information (technology), market performance, and welfare in the South Indian fisheries sector.” The quarterly journal of economics.
]

---

# Kerala Fish Market

.fade[Jenson (2007) studied of 15 fish markets along the 225 km Northern coast of Kerala to understand whether the market for fish was working.]

- Fisherman had to .emob[choose] the port/market where they would get the best price for their catch

- Fish merchants .emob[bought] the fish from the fisherman and sold it to the consumers

- If fish merchants already had enough fish on the port they landed, the fisherman would just .emob[jettison] their catch

Fish .emob[prices] were .emob[volatile] and fisherman’s .emob[profits low]

]

due to .emob[wastage] and .emob[ex-post bargaining power] of fish merchants who bought from the fisherman and sold to the consumers

]

---

class:top,center

### Market Conditions on 14th January 1997 in the Fish Markets

.tack.mygraph[
<img src="images/lec3/f0.jpg" width="80%" style="display: block; margin: auto;" />
]

---

class:center,top

### Average market price across markets

.emb[Excess supply] .tab[] | .tab[] .emd[Market Clearing] .tab[] | .tab[] .emb[Excess demand] 
:---:|:---:|:---:
.emb[₹ 0] | ₹ 5.9 | .emb[₹ 9.3]

.tack.mygraph[
<img src="images/lec3/f0.jpg" width="80%" style="display: block; margin: auto;" />
]

---

class:inverse,middle

# Efficiency

### Vilfredo Pareto

Civil engineer

Sociologist

Economist,

Political scientist

Philosopher

]

.pull-right[
<img src="images/new/pareto.png" width="150%" style="display: block; margin: auto;" />
]

---

## Pareto Efficiency

.tack[
**Pareto efficiency** situations are one where you cannot make anyone better-off without making anyone worse off.
]

.center.emgr[**Winners** and **losers** in the society]

## Pareto Improvement

.tack[
An intervention that makes some people better off without making anyone worse off is called a **Pareto improvement**.  
]

.center.emgr[**Winners** but **no losers** in the society]

---

class:center

## Sequential roll out of mobile phone coverage

.tack.mygrapha[
<img src="images/lec3/f1.png" width="60%" style="display: block; margin: auto;" />
]

---

class:center

## Introduction of mobile phones

.tack.mygrapha[
<img src="images/lec3/f2.png" width="70%" style="display: block; margin: auto;" />
]

---

# Market Efficiency

Introduction of mobile phones made the fish market more efficient

&nbsp;

-  Reduced waste & elimination

-  Sharp decrease in price volatility

-  Fisherman’s profits went up by 8%

-  Consumer prices decreased by 4%

---

class:inverse,middle

# Adam Smith

&nbsp;

Economist

Philosopher

Key figure in  
Scottish Enlightenment

]

.pull-right[
<img src="images/new/adam_smith.png" width="200%" style="display: block; margin: auto;" />
]

---

## Adam Smith's insight

.center.tack.w75[
.center[Well-functioning .emob[markets] are Pareto .emob[efficient]. ]
]

.center.w75[
That is *all mutually beneficial trades are undertaken* and no trades than can make someone better off without making anyone worse off are left unexploited.]

## Unanswered question

.center.tack[

How do the buyers and seller .emob[find] each other?

Who .emob[owns] the space where the buyers and sellers meet?

]

---

# Co-incidence of location

**Before mobile phones**

it .emob[required co-incidence of location] to exchange price information
]

**After mobile phones**

price information **flowed** through a .emob[different space]

]

---

# Co-incidence of location

]

**Payment systems** free people from co-incidence of location

Co-incidence of location remains for **goods**

]

---

## Coda

.pull-left.tack[

### Kerala Fish Markets

Atypical example because most places are landlocked.
]

&nbsp;

.pull-right.tack[

Buyer's ability to move across space is determined by the .emob[transport network]

> Numerous options in .emob[urban areas]

> Limited options in .emob[rural areas]

]

---

# Space

&nbsp;

### Conceptual Framework

---

.pull-left.tack[

##  Conley (2012)

Place is simply *there*, while space is *produced* or *invented*.

&nbsp;

]

Conley, V. A. (2012). Spatial ecologies: Urban sites, state and world-space in french cultural theory (Vol. 21). Liverpool University Press.
]

---

.pull-right.tack[

## Lefebvre (1974)

**Humans** produce *space* & the **humans** in turn are produced by *space*.

]

&nbsp;

> *Feedback loop*

&nbsp;

> *Endogeneity*

]

]

---

## Michel Serres (1995)

]

.pull-right.tack[

If you take a handkerchief and spread it out in order to iron it, you can see in it certain fixed distances and proximities. If you sketch a circle in one area, you can mark out nearby points and measure far-off distances. Then take the same handkerchief and crumple it, by putting it in your pocket. Two distant points suddenly are close, even superimposed. If, further, you tear it in certain places, two points that were close can become very distant.

]

.footnote[
M. Serres with B. Latour, Conversations on Science, Culture, and Time, trans. Roxanne Lapidus. Ann Arbor: University of Michigan Press, 1995, pp. 60–61.
]

---

## Michel Serres (1995)

]

.pull-right.tack[
If you take a handkerchief and spread it out in order to iron it, you can see in it certain fixed distances and proximities. .fade[If you sketch a circle in one area, you can mark out nearby points and measure far-off distances. Then take the same handkerchief and crumple it, by putting it in your pocket. Two distant points suddenly are close, even superimposed. If, further, you tear it in certain places, two points that were close can become very distant.]
]

.footnote[
M. Serres with B. Latour, Conversations on Science, Culture, and Time, trans. Roxanne Lapidus. Ann Arbor: University of Michigan Press, 1995, pp. 60–61.
]

---

&nbsp;

<img src="images/cover4_png.png" width="100%" style="display: block; margin: auto;" />
]

.pull-right.tack[
.fade[If you take a handkerchief and spread it out in order to iron it, you can see in it certain fixed distances and proximities.] If you sketch a circle in one area, you can mark out nearby points and measure far-off distances. Then take the same handkerchief and crumple it, by putting it in your pocket. .fade[Two distant points suddenly are close, even superimposed. If, further, you tear it in certain places, two points that were close can become very distant.]
]

.footnote[
M. Serres with B. Latour, Conversations on Science, Culture, and Time, trans. Roxanne Lapidus. Ann Arbor: University of Michigan Press, 1995, pp. 60–61.
]

---

&nbsp;

linking places through

> .emob[high speed railway line]

> .emob[Expressways]

]

.pull-right.tack[
.fade[If you take a handkerchief and spread it out in order to iron it, you can see in it certain fixed distances and proximities. If you sketch a circle in one area, you can mark out nearby points and measure far-off distances. Then take the same handkerchief and crumple it, by putting it in your pocket.] Two distant points suddenly are close, even superimposed. .fade[If, further, you tear it in certain places, two points that were close can become very distant.]
]

.footnote[
M. Serres with B. Latour, Conversations on Science, Culture, and Time, trans. Roxanne Lapidus. Ann Arbor: University of Michigan Press, 1995, pp. 60–61.
]

---

> .emob[Enclosure movement]

> .emob[Political borders]

> .emob[high speed railway line]

> .emob[Expressways]

]

.pull-right.tack[
.fade[If you take a handkerchief and spread it out in order to iron it, you can see in it certain fixed distances and proximities. If you sketch a circle in one area, you can mark out nearby points and measure far-off distances. Then take the same handkerchief and crumple it, by putting it in your pocket. Two distant points suddenly are close, even superimposed.] If, further, you tear it in certain places, two points that were close can become very distant.
]

.footnote[
M. Serres with B. Latour, Conversations on Science, Culture, and Time, trans. Roxanne Lapidus. Ann Arbor: University of Michigan Press, 1995, pp. 60–61.
]

---

### Mapping the space through night light

---

&nbsp;

Rehman, S., Honap, V., Siddiqui, A., Maske, A., & Maithani, S. (2021). Spatio-temporal variations in night lights, economy and night light emissions in states of india. Journal of the Indian Society of Remote Sensing, 49, 2933–2943.

]

---

# Road Network

.footnote[
Aniket, K. (2024). Markets, space and infrastructure. In B. Banerji & S. Sharma (Eds.), Public policies and business strategies in india and europe: Ideas for a sustainable, inclusive and resilient society. Springer.
]

---

# Rail Network

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