Local inequality and project choice: Theory and evidence from Ecuador
This paper provides evidence consistent with elite capture of Social Fund investment projects in Ecuador. Exploiting a unique combination of data sets on village-level income distributions, Social Fund project administration, and province-level electoral results, we test a simple model of project choice when local political power is unequally distributed. In accordance with the predictions of the model, poorer villages are more likely to receive projects that provide excludable (private) goods to the poor, such as latrines. Controlling for poverty, more unequal communities are less likely to receive such projects. Consistent with the hypothesis of elite capture, these results are sensitive to the specific measures of inequality and elite power used in the empirical analysis, and are strongest for expenditure shares at the top of the distribution.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ghazala Mansuri, 2004.
"Community-Based and -Driven Development: A Critical Review,"
World Bank Research Observer,
World Bank Group, vol. 19(1), pages 1-39.
- Mansuri, Ghazala & Rao, Vijayendra, 2004. "Community-based (and driven) development : A critical review," Policy Research Working Paper Series 3209, The World Bank.
- Arjan de Haan & Jeremy Holland & Nazneen Kanji, 2002. "Social funds: an effective instrument to support local action for poverty reduction?," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(5), pages 643-652.
- Chris Elbers & Peter F. Lanjouw & Johan A. Mistiaen & Berk Özler & Ken Simler, 2004.
"On the Unequal Inequality of Poor Communities,"
World Bank Economic Review,
World Bank Group, vol. 18(3), pages 401-421.
- Dixit, Avinash K & Londregan, John, 1994. "The Determinants of Success of Special Interests in Redistributive Politics," CEPR Discussion Papers 1054, C.E.P.R. Discussion Papers.
- Christina Paxson & Norbert R. Schady, 2002. "The Allocation and Impact of Social Funds: Spending on School Infrastructure in Peru," World Bank Economic Review, World Bank Group, vol. 16(2), pages 297-319, August.
- Dasgupta, Indraneel & Kanbur, Ravi, 2001. "Class, Community, Inequality," Working Papers 127671, Cornell University, Department of Applied Economics and Management.
- Jeff Dayton-Johnson & Pranab Bardhan, 2002.
"Inequality And Conservation On The Local Commons: A Theoretical Exercise,"
Royal Economic Society, vol. 112(481), pages 577-602, July.
- Dayton-Johnson, Jeff & Bardhan, Pranab, 1996. "Inequality and Conservation on the Local Commons: A Theoretical Exercise," Center for International and Development Economics Research, Working Paper Series qt7f9913w9, Center for International and Development Economics Research, Institute for Business and Economic Research, UC Berkeley.
- Jeff Dayton-Johnson and Pranab Bardhan., 1996. "Inequality and Conservation on the Local Commons: A Theoretical Exercise," Center for International and Development Economics Research (CIDER) Working Papers C96-071, University of California at Berkeley.
- John Newman & Menno Pradhan & Laura B. Rawlings & Geert Ridder & Ramiro Coa & Jose Luis Evia, 2002. "An Impact Evaluation of Education, Health, and Water Supply Investments by the Bolivian Social Investment Fund," World Bank Economic Review, World Bank Group, vol. 16(2), pages 241-274, August.
- Demombynes, Gabriel & Elbers, Chris & Lanjouw, Jenny & Lanjouw, Peter & Mistiaen, Johan & Ozler, Berk, 2002. "Producing an Improved Geographic Profile of Poverty: Methodology and Evidence from Three Developing Countries," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Galasso, Emanuela & Ravallion, Martin, 2005. "Decentralized targeting of an antipoverty program," Journal of Public Economics, Elsevier, vol. 89(4), pages 705-727, April.
- Dilip Mookherjee & Pranab K. Bardhan, 2000. "Capture and Governance at Local and National Levels," American Economic Review, American Economic Association, vol. 90(2), pages 135-139, May.
- Elbers, Chris & Lanjouw, Jean O. & Lanjouw, Peter, 2004.
"Imputed welfare estimates in regression analysis,"
Policy Research Working Paper Series
3294, The World Bank.
- Francisco H.G. Ferreira, 2001. "Education for the masses? The interaction between wealth, educational and political inequalities," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 9(2), pages 533-552, July.
- Robert S. Chase, 2002. "Supporting Communities in Transition: The Impact of the Armenian Social Investment Fund," World Bank Economic Review, World Bank Group, vol. 16(2), pages 219-240, August.
- Menno Pradhan & Laura B. Rawlings, 2002. "The Impact and Targeting of Social Infrastructure Investments: Lessons from the Nicaraguan Social Fund," World Bank Economic Review, World Bank Group, vol. 16(2), pages 275-295, August.
- Gans, Joshua S. & Smart, Michael, 1996. "Majority voting with single-crossing preferences," Journal of Public Economics, Elsevier, vol. 59(2), pages 219-237, February.
- Julie van Domelen, 2002. "Social funds: evidence on targeting, impacts and sustainability," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(5), pages 627-642.
- Bardhan, Pranab & Mookherjee, Dilip, 2005. "Decentralizing antipoverty program delivery in developing countries," Journal of Public Economics, Elsevier, vol. 89(4), pages 675-704, April.
- Roland Benabou, 2000. "Unequal Societies: Income Distribution and the Social Contract," American Economic Review, American Economic Association, vol. 90(1), pages 96-129, March.
- Howard White, 2002. "Social funds: a review of the issues," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(5), pages 605-610.
- Elbers, Chris & Lanjouw, Jean O. & Lanjouw, Peter, 2002. "Micro-level estimation of welfare," Policy Research Working Paper Series 2911, The World Bank.
- Chris Elbers & Jean O. Lanjouw & Peter Lanjouw, 2003. "Micro--Level Estimation of Poverty and Inequality," Econometrica, Econometric Society, vol. 71(1), pages 355-364, January.
When requesting a correction, please mention this item's handle: RePEc:eee:pubeco:v:92:y:2008:i:5-6:p:1022-1046. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.