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Measuring the welfare effects of slum improvement programs: The case of Mumbai

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  • Takeuchi, Akie
  • Cropper, Maureen
  • Bento, Antonio

Abstract

This paper evaluates the welfare effects of in situ slum upgrading and relocation programs using data for 5000 households in Mumbai, India. We estimate a model of residential location choice in which households value the ethnic composition of neighborhoods and employment accessibility in addition to housing characteristics. The importance of neighborhood composition and employment access implies that relocation programs must be designed carefully if they are to be welfare-enhancing. The value of our model is that it allows us to determine the magnitude of these effects. It also allows us to determine the value households place on in situ improvements, which policymakers need to know if they are to design housing programs that permit cost recovery.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 64 (2008)
Issue (Month): 1 (July)
Pages: 65-84

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Handle: RePEc:eee:juecon:v:64:y:2008:i:1:p:65-84

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Web page: http://www.elsevier.com/locate/inca/622905

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  1. Patrick J. Bayer & Robert McMillan & Kim Rueben, 2004. "What Drives Racial Segregation? New Evidence Using Census Microdata," Yale School of Management Working Papers ysm409, Yale School of Management.
  2. Patrick Bayer & Stephen L. Ross & Giorgio Topa, 2008. "Place of Work and Place of Residence: Informal Hiring Networks and Labor Market Outcomes," Journal of Political Economy, University of Chicago Press, vol. 116(6), pages 1150-1196, December.
  3. Ingram, Gregory K. & Carroll, Alan, 1981. "The spatial structure of Latin American cities," Journal of Urban Economics, Elsevier, vol. 9(2), pages 257-273, March.
  4. Berry, Steven & Levinsohn, James & Pakes, Ariel, 1995. "Automobile Prices in Market Equilibrium," Econometrica, Econometric Society, vol. 63(4), pages 841-90, July.
  5. Akie Takeuchi & Maureen Cropper & Antonio Bento, 2007. "The Impact Of Policies To Control Motor Vehicle Emissions In Mumbai, India," Journal of Regional Science, Wiley Blackwell, vol. 47(1), pages 27-46.
  6. Kaufmann, Daniel & Quigley, John M., 1987. "The consumption benefits of investment in infrastructure : The evaluation of sites-and-services programs in underdeveloped countries," Journal of Development Economics, Elsevier, vol. 25(2), pages 263-284, April.
  7. Robert M. Buckley & Jerry Kalarickal, 2005. "Housing Policy in Developing Countries: Conjectures and Refutations," World Bank Research Observer, World Bank Group, vol. 20(2), pages 233-257.
  8. Kaivan Munshi & Mark Rosenzweig, 2006. "Traditional Institutions Meet the Modern World: Caste, Gender, and Schooling Choice in a Globalizing Economy," American Economic Review, American Economic Association, vol. 96(4), pages 1225-1252, September.
  9. Malpezzi, Stephen & Mayo, Stephen K., 1987. "User cost and housing tenure in developing countries," Journal of Development Economics, Elsevier, vol. 25(1), pages 197-220, February.
  10. Baker, Judy & Basu, Rakhi & Cropper, Maureen & Lall, Somik & Takeuchi, Akie, 2005. "Urban poverty and transport : the case of Mumbai," Policy Research Working Paper Series 3693, The World Bank.
  11. Jimenez, Emmanuel, 1984. "Tenure Security and Urban Squatting," The Review of Economics and Statistics, MIT Press, vol. 66(4), pages 556-67, November.
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Cited by:
  1. Constant Tra, 2009. "Title: A Discrete Choice Equilibrium Approach to Valuing Large Environmental Changes," Working Papers 0922, University of Nevada, Las Vegas , Department of Economics.
  2. Tra, Constant I., 2010. "A discrete choice equilibrium approach to valuing large environmental changes," Journal of Public Economics, Elsevier, vol. 94(1-2), pages 183-196, February.
  3. Jan K. Brueckner, 2012. "Urban Squatting with Rent-Seeking Organizers," CESifo Working Paper Series 3920, CESifo Group Munich.

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