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The Welfare Impacts of Local Investment Projects: Evidence from the Guatemala FIS

Author

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  • Ibarrarán, Pablo
  • Sarzosa, Miguel
  • Soares, Yuri

Abstract

This paper assesses the welfare impacts of local investments projects in rural areas of Guatemala. Using census track data from two rounds of the Guatemalan population census, as well as administrative data on investment projects, the authors estimate the impact of education, sanitation, productive, and total investment activities at the village level on measures of welfare. This is the first impact evaluation of social funds in Guatemala, and also the first paper that uses village level data, and both a multi-treatment effect approach and the generalized propensity score with continuous treatments to analyze this type of interventions. The outcome is such that local investment in schools significantly boosts enrollment and investments in water and sewerage significantly improved measures of access to water. The authors also examine the welfare impacts in regards to infant mortality and school progression.

Suggested Citation

  • Ibarrarán, Pablo & Sarzosa, Miguel & Soares, Yuri, 2008. "The Welfare Impacts of Local Investment Projects: Evidence from the Guatemala FIS," IDB Publications (Working Papers) 3020, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:3020
    DOI: http://dx.doi.org/10.18235/0011183
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    References listed on IDEAS

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    1. Elbers, Chris & Lanjouw, Jean O. & Lanjouw, Peter, 2002. "Micro-level estimation of welfare," Policy Research Working Paper Series 2911, The World Bank.
    2. Christina Paxson & Norbert R. Schady, 2002. "The Allocation and Impact of Social Funds: Spending on School Infrastructure in Peru," The World Bank Economic Review, World Bank, vol. 16(2), pages 297-319, August.
    3. Kosuke Imai & David A. van Dyk, 2004. "Causal Inference With General Treatment Regimes: Generalizing the Propensity Score," Journal of the American Statistical Association, American Statistical Association, vol. 99, pages 854-866, January.
    4. repec:idb:brikps:19258 is not listed on IDEAS
    5. Luis Marcano, 2005. "Atacando Pobreza: Evaluación del Programa Fondo de Inversión Social de Panamá," OVE Working Papers 0205, Inter-American Development Bank, Office of Evaluation and Oversight (OVE).
    6. Lechner, Michael, 1999. "Identification and Estimation of Causal Effects of Multiple Treatments Under the Conditional Independence Assumption," IZA Discussion Papers 91, IZA Network @ LISER.
    7. Bia, Michela, 2007. "The Propensity Score method in public policy evaluation: a survey," POLIS Working Papers 79, Institute of Public Policy and Public Choice - POLIS.
    8. Feres, Juan Carlos & Mancero, Xavier, 2000. "El método de las necesidades básicas insatisfechas (NBI) y sus aplicaciones en América Latina," Sede de la CEPAL en Santiago (Estudios e Investigaciones) 31527, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    9. Guido W. Imbens, 1999. "The Role of the Propensity Score in Estimating Dose-Response Functions," NBER Technical Working Papers 0237, National Bureau of Economic Research, Inc.
    10. Vijayendra Rao & Ana Maria Ibanez, 2005. "The Social Impact of Social Funds in Jamaica: A 'Participatory Econometric' Analysis of Targeting, Collective Action, and Participation in Community-Driven Development," Journal of Development Studies, Taylor & Francis Journals, vol. 41(5), pages 788-838.
    11. Rachel Marcus, 2002. "Social funds as instruments for reducing childhood poverty: lessons from Save the Children's experience," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(5), pages 653-666.
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    Cited by:

    1. Francisca Henriquez, 2009. "Microcrédito y su Impacto: Un Acercamiento con Datos Chilenos," OVE Working Papers 0309, Inter-American Development Bank, Office of Evaluation and Oversight (OVE).
    2. Heinrich, Carolyn J. & Lopez, Yeri, 2009. "Does Community Participation Produce Dividends in Social Investment Fund Projects?," World Development, Elsevier, vol. 37(9), pages 1554-1568, September.
    3. Inder Ruprah & Luis Marcano, 2009. "Does technical assistance matter? An impact evaluation approach to estimate its value added," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 1(4), pages 507-528.
    4. Gonzalez Diez, Verónica M. & Ibarrarán, Pablo & Maffioli, Alessandro & Rozo, Sandra, 2009. "The Impact of Technology Adoption on Agricultural Productivity: The Case of the Dominican Republic," IDB Publications (Working Papers) 3017, Inter-American Development Bank.

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    Keywords

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    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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