Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/45999
Authors: 
Pitt, Mark M.
Menon, Nidhiya
Year of Publication: 
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

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