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

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

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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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
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622905

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  1. Steven T. Berry, 1994. "Estimating Discrete-Choice Models of Product Differentiation," RAND Journal of Economics, The RAND Corporation, vol. 25(2), pages 242-262, Summer.
  2. Patrick Bayer & Stephen Ross & Giorgio Topa, 2005. "Place of Work and Place of Residence: Informal Hiring Networks and Labor Market Outcomes," NBER Working Papers 11019, National Bureau of Economic Research, Inc.
  3. 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.
  4. Bayer, Patrick & McMillan, Robert & Rueben, Kim S., 2004. "What drives racial segregation? New evidence using Census microdata," Journal of Urban Economics, Elsevier, vol. 56(3), pages 514-535, November.
  5. 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.
  6. 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.
  7. Mayo, Stephen K & Gross, David J, 1987. "Sites and Services--and Subsidies: The Economics of Low-Cost Housing in Developing Countries," World Bank Economic Review, World Bank Group, vol. 1(2), pages 301-35, January.
  8. Jimenez, Emmanuel, 1984. "Tenure Security and Urban Squatting," The Review of Economics and Statistics, MIT Press, vol. 66(4), pages 556-67, November.
  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. Berry, Steven & Levinsohn, James & Pakes, Ariel, 1995. "Automobile Prices in Market Equilibrium," Econometrica, Econometric Society, vol. 63(4), pages 841-90, July.
  11. 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.
  12. 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.
  13. 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.
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