Modeling Efficiency-Equity Tradeoffs in Rural Roads Investment Resource Allocation in Offinso District of Ghana

Abstract

In this study the objectives are to define appropriate measures of efficiency and equity in the context of rural road investment and to embrace the efficiency-equity trade-off in mathematical programming model for allocating financial resources for rual road investment at the sub-regional level. In order to solve the problem, it was formulated as selecting some rural roads for investment that lead to the maximum increase in rural accessibility for the greatest number of people, and at the same time minimize the inequity in accessibility distribution within budget constraint, The non-inferior solutions were generated by E-constraint approach. The preferred solution was obtained by using the importance of link to each agency. This method was applied in the Offinso district, the Ashanti Region of Ghana. As a result we proved that this method was effective to determine the allocation of the road investment in the developing country.