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Does it Pay to Participate?

Author

Listed:
  • Ari Perdana

    (CSIS Jakarta)

  • Kostas Matakos
  • Elizabeth Radin

Abstract

This paper analyzes whether participation in formal and informal community activities helped household in Indonesia mitigating the impact of the 1998 economic crisis. The paper uses the 1997 and 2000 round of Indonesian Family Life Survey (IFLS) to capture the impact of economic crisis on household welfare. The empirical results do not seem to support those hypotheses. Using number of children in each household as instrumental variable to solve the reverse causality and omitted variable bias problems, coefficient for community participation is not statistically significant in explaining changes in household expenditure. The large magnitude and universal nature of the shock might explain why social capital did not help households. However, using probit estimation with the same instrument, we find that participation in community activities increased the probability of households getting government assistance.

Suggested Citation

  • Ari Perdana & Kostas Matakos & Elizabeth Radin, 2006. "Does it Pay to Participate?," Development Economics Working Papers 21815, East Asian Bureau of Economic Research.
    • Handle: RePEc:eab:develo:21815
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    File URL: http://www.eaber.org/node/21815
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    References listed on IDEAS

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    1. Pritchett, Lant & Woolcock, Michael, 2004. "Solutions When the Solution is the Problem: Arraying the Disarray in Development," World Development, Elsevier, vol. 32(2), pages 191-212, February.
    2. Stephen K. Ma, 1999. "Man Of Efficiency And Man Of Ethics: Can China'S Administrative Reform Produce Both For Her Economic Development?," Review of Policy Research, Policy Studies Organization, vol. 16(2), pages 133-146, June.
    3. Surya Sen, 1999. "Global financial crisis and economic development," Chicago Fed Letter, Federal Reserve Bank of Chicago, issue Aug.
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    Cited by:

    1. Peterman, A., 2010. "A review of empirical evidence on gender differences in nonland agricultural inputs, technology, and services in developing countries," IWMI Working Papers H043605, International Water Management Institute.
    2. Peterman, Amber & Behrman, Julia & Quisumbing, Agnes, "undated". "A review of empirical evidence on gender differences in non-land agricultural inputs, technology, and services in developing countries," ESA Working Papers 289010, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).

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