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http://hdl.handle.net/10419/45999
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| Title: | | Spatial decentralization and program evaluation: Theory and an example from Indonesia  |
| Authors: | | Pitt, Mark M. Menon, Nidhiya |
| Issue Date: | | 2010 |
| Series/Report no.: | | Discussion paper series // Forschungsinstitut zur Zukunft der Arbeit 5208 |
| Abstract: | | This paper proposes a novel instrumental variable method for program evaluation that only requires a single cross-section of data on the spatial intensity of programs and outcomes. The instruments are derived from a simple theoretical model of government decision-making in which governments are responsive to the attributes of places and their populations, rather than to the attributes of individuals, in making allocation decisions across space, and have a social welfare function that is spatially weakly separable, that is, that the budgeting process is multi-stage with respect to administrative districts and sub-districts. The spatial instrumental variables model is then estimated and tested by GMM with a single cross-section of Indonesian census data. The results offer support to the identification strategy proposed. |
| Subjects: | | spatial decentralization, program evaluation, instrumental variables, Indonesia |
| JEL: | | C21 H44 O12 C50 |
| Document Type: | | Working Paper |
| Appears in Collections: | | IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)
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