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Implications of alternate policies on welfare of slum dwellers: Evidence from Pune, India

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  • Lall, Somik V.
  • Lundberg, Mattias K.A.
  • Shalizi, Zmarak

Abstract

In this paper we examine how slum dwellers value location-based amenities. In most developing country cities, residents living in slums have poor-quality dwellings and limited access to basic public services and amenities. Using data from Pune, India, we estimate the residential location choices of slum dwellers, which are conditional on housing quality, neighborhood amenities, and community structure. We use these estimates to simulate the impact of alternate interventions on household welfare. We find that households derive benefits from housing quality and neighborhood amenities. While relocating households to the periphery has adverse consequences for household welfare, we show that households could be adequately compensated out of the increased tax revenue accruing from alternative uses of the vacated central land.

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  • Lall, Somik V. & Lundberg, Mattias K.A. & Shalizi, Zmarak, 2008. "Implications of alternate policies on welfare of slum dwellers: Evidence from Pune, India," Journal of Urban Economics, Elsevier, vol. 63(1), pages 56-73, January.
  • Handle: RePEc:eee:juecon:v:63:y:2008:i:1:p:56-73
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    Cited by:

    1. Brueckner, Jan K., 2013. "Urban squatting with rent-seeking organizers," Regional Science and Urban Economics, Elsevier, vol. 43(4), pages 561-569.
    2. Sharon Barnhardt & Erica Field & Rohini Pande, 2017. "Moving to Opportunity or Isolation? Network Effects of a Randomized Housing Lottery in Urban India," American Economic Journal: Applied Economics, American Economic Association, vol. 9(1), pages 1-32, January.
    3. Jedwab, Remi & Christiaensen, Luc & Gindelsky, Marina, 2017. "Demography, urbanization and development: Rural push, urban pull and…urban push?," Journal of Urban Economics, Elsevier, vol. 98(C), pages 6-16.
    4. Brueckner, Jan K. & Lall, Somik V., 2015. "Cities in Developing Countries," Handbook of Regional and Urban Economics, Elsevier.
    5. Raul F. C. Miranda & Carolina Grottera & Mario Giampietro, 2016. "Understanding slums: analysis of the metabolic pattern of the Vidigal favela in Rio de Janeiro, Brazil," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 18(5), pages 1297-1322, October.
    6. Parikh, Priti & Fu, Kun & Parikh, Himanshu & McRobie, Allan & George, Gerard, 2015. "Infrastructure Provision, Gender, and Poverty in Indian Slums," World Development, Elsevier, vol. 66(C), pages 468-486.
    7. Brueckner, Jan K., 2013. "Slums in developing countries: New evidence for Indonesia," Journal of Housing Economics, Elsevier, vol. 22(4), pages 278-290.
    8. Jan K. Brueckner & Harris Selod, 2009. "A Theory of Urban Squatting and Land-Tenure Formalization in Developing Countries," American Economic Journal: Economic Policy, American Economic Association, vol. 1(1), pages 28-51, February.
    9. Franklin, Simon, 2016. "Enabled to work: the impact of government housing on slum dwellers in South Africa," LSE Research Online Documents on Economics 66537, London School of Economics and Political Science, LSE Library.
    10. Barnhardt, Sharon & Field, Erica & Pande, Rohini, 2014. "Moving to Opportunity or Isolation? Network Effects of a Slum Relocation Program in India," IIMA Working Papers WP2014-11-01, Indian Institute of Management Ahmedabad, Research and Publication Department.
    11. Nilopa Shah, 2014. "Squatting On Government Land," Journal of Regional Science, Wiley Blackwell, vol. 54(1), pages 114-136, January.

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    Keywords

    Slums India Urban policies Welfare;

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