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

  • Pablo Ibarraran

    (Office of Evaluation and Oversight, Inter-American Development Bank)

  • Miguel Sarzosa

    (Office of Evaluation and Oversight, Inter-American Development Bank)

  • Yuri Suarez Dillon Soares

    ()

    (Office of Evaluation and Oversight, Inter-American Development Bank)

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, we find, as expected, that local investment in schools significantly boost enrollment and normal progression in school, that investments in water and sewerage significantly improved measures of access to water. We also show that the amount of investment matters. Using a dose-response functions based on generalized propensity score we also find that larger investments are associated with larger welfare improvements. We find no evidence of effectiveness of investments on child mortality. In terms of productive projects, there was a significant and consistent impact on consumption. We did not find evidence to suggest complementarities of impacts.

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Paper provided by Inter-American Development Bank, Office of Evaluation and Oversight (OVE) in its series OVE Working Papers with number 0208.

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Length: 39 pages
Date of creation: Feb 2008
Date of revision:
Handle: RePEc:idb:ovewps:0208
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  1. 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).
  2. 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.
  3. 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.
  4. Elbers, Chris & Lanjouw, Jean O. & Lanjouw, Peter, 2002. "Micro-level estimation of welfare," Policy Research Working Paper Series 2911, The World Bank.
  5. Lechner, Michael, 1999. "Identification and Estimation of Causal Effects of Multiple Treatments Under the Conditional Independence Assumption," IZA Discussion Papers 91, Institute for the Study of Labor (IZA).
  6. 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.
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