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Paving streets for the poor: experimental analysis of infrastructure effects
- Publication Year :
- 2015
- Publisher :
- Massachusetts Institute of Technology Press, 2015.
-
Abstract
- This paper provides the first experimental estimation of the effects of the supply of publicly financed urban infrastructure on property values. Using a pre- and post-intervention survey design along with random allocation of first-time street asphalting of residential streets located in peripheral neighborhoods in Mexico, we show that within two years of the intervention households are able to transform their increased property wealth into significantly larger rates of vehicle ownership, household appliances, and home improvements. Increased consumption is made possible via both credit use and less saving. A cost-benefit analysis indicates that the valuation of street asphalting as capitalized into property values is about as large as construction costs, suggesting efficient levels of public good provision.
- Subjects :
- Random allocation
Finance
jel:C93
Economics and Econometrics
Public economics
business.industry
05 social sciences
Urban infrastructure
jel:H41
development, infrastructure, credit use, wealth effect, randomized controlled trial
Property value
jel:O12
0502 economics and business
Economics
050207 economics
business
Social Sciences (miscellaneous)
jel:O18
050205 econometrics
Valuation (finance)
Subjects
Details
- Database :
- OpenAIRE
- Accession number :
- edsair.doi.dedup.....a60321e1567658a2a5fda4df550809be