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Does Public Investment Contribute to Increasing Institutional and Interpersonal Trust?: Place-Based Policies for Sports and Cultural Activities in Cali, Colombia

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  • Martínez, Lina María
  • Sayago, Juan Tomás

Abstract

This paper studies the effect of two place-based policies implemented in Cali, Colombia on social capital and trust. We use the CaliBRANDO survey to account for institutional and interpersonal trust, matching neighborhood of residence and where policies are applied. We set up a difference-in-difference model to estimate the impact of the policies on the indexes that measure trust. We nd that the organized sport policy improves institutional trust by about 4%. Our results are significant for soccer and basketball and not significant for futsal and other activities. The evidence does not support an effect of nightlights on trust.

Suggested Citation

  • Martínez, Lina María & Sayago, Juan Tomás, 2021. "Does Public Investment Contribute to Increasing Institutional and Interpersonal Trust?: Place-Based Policies for Sports and Cultural Activities in Cali, Colombia," IDB Publications (Working Papers) 11894, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:11894
    DOI: http://dx.doi.org/10.18235/0003827
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    More about this item

    Keywords

    Trust; Place-based policies; Social capital;
    All these keywords.

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • L38 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Policy
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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