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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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  • Takeuchi, Akie & Cropper, Maureen & Bento, Antonio, 2008. "Measuring the welfare effects of slum improvement programs: The case of Mumbai," Journal of Urban Economics, Elsevier, vol. 64(1), pages 65-84, July.
  • Handle: RePEc:eee:juecon:v:64:y:2008:i:1:p:65-84
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    Cited by:

    1. Constant I. Tra & Anna Lukemeyer & Helen Neill, 2013. "Evaluating The Welfare Effects Of School Quality Improvements: A Residential Sorting Approach," Journal of Regional Science, Wiley Blackwell, vol. 53(4), pages 607-630, October.
    2. Galiani, Sebastián & Gertler, Paul J. & Undurraga, Raimundo & Cooper, Ryan & Martínez, Sebastián & Ross, Adam, 2017. "Shelter from the storm: Upgrading housing infrastructure in Latin American slums," Journal of Urban Economics, Elsevier, vol. 98(C), pages 187-213.
    3. Brueckner, Jan K., 2013. "Urban squatting with rent-seeking organizers," Regional Science and Urban Economics, Elsevier, vol. 43(4), pages 561-569.
    4. Nicolai V. Kuminoff & V. Kerry Smith & Christopher Timmins, 2013. "The New Economics of Equilibrium Sorting and Policy Evaluation Using Housing Markets," Journal of Economic Literature, American Economic Association, vol. 51(4), pages 1007-1062, December.
    5. 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.
    6. 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.
    7. Brueckner, Jan K. & Lall, Somik V., 2015. "Cities in Developing Countries," Handbook of Regional and Urban Economics, Elsevier.
    8. 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.
    9. 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.
    10. Brueckner, Jan K., 2013. "Slums in developing countries: New evidence for Indonesia," Journal of Housing Economics, Elsevier, vol. 22(4), pages 278-290.
    11. World Bank, 2011. "A Gender Assessment of Mumbai's Public Transport," World Bank Other Operational Studies 12347, The World Bank.
    12. Sandrine Mesplé-Somps & Laure Pasquier-Doumer & Charlotte Guénard, 2016. "Evaluation d’impact d’un projet de rénovation urbaine dans la commune de Balbala, Djibouti," Working Papers hal-01438389, HAL.
    13. Constant I. Tra, 2013. "Measuring the General Equilibrium Benefits of Air Quality Regulation in Small Urban Areas," Land Economics, University of Wisconsin Press, vol. 89(2), pages 291-307.
    14. 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.
    15. Wu, Wenjie, 2015. "Rail access and subjective well-being: Evidence from quality of life surveys," Journal of Comparative Economics, Elsevier, vol. 43(2), pages 456-470.
    16. Nilopa Shah, 2014. "Squatting On Government Land," Journal of Regional Science, Wiley Blackwell, vol. 54(1), pages 114-136, January.
    17. Galiani, Sebastián & Gertler, Paul J. & Undurraga, Raimundo & Cooper, Ryan & Martínez, Sebastián & Ross, Adam, 2017. "Shelter from the storm: Upgrading housing infrastructure in Latin American slums," Journal of Urban Economics, Elsevier, vol. 98(C), pages 187-213.

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