Using a hedonic pricing model for provincial land prices and provincial wages, we estimate the effects
of differences in the availability of local public goods in the provinces of non-urban Thailand for the
period from 1996 to 2002. We observe that local public goods can indeed explain differences in
provincial wages and land prices. Infrastructure is significantly more important than welfare- related
facilities or local school quality. For most local public goods the productivity-increasing effects
dominate their utility-enhancing properties.