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Bundling of Services and Household Welfare in Developing Countries Using Panel Data: The Case of Peru

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  • Alberto Chong
  • Jesko Hentschel
  • Jaime Saavedra-Chanduví

Abstract

Using panel data for Peru for the period 1994-2000, we find that when households receive two or more services jointly, the welfare increases of the household, as measured by changes in consumption, are larger than when services are provided separately. Such an increase appears to be more than proportional, as F-tests on the coefficients of the corresponding regressors confirm. Thus, we find that bundling of services may help realize welfare effects.

Suggested Citation

  • Alberto Chong & Jesko Hentschel & Jaime Saavedra-Chanduví, 2004. "Bundling of Services and Household Welfare in Developing Countries Using Panel Data: The Case of Peru," Research Department Publications 4337, Inter-American Development Bank, Research Department.
    • Handle: RePEc:idb:wpaper:4337
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    References listed on IDEAS

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    1. Lanjouw, Peter & Ravallion, Martin, 1995. "Poverty and Household Size," Economic Journal, Royal Economic Society, vol. 105(433), pages 1415-1434, November.
    2. Glewwe, Paul & Hall, Gillette, 1994. "Poverty, Inequality, and Living Standards during Unorthodox Adjustment: The Case of Peru, 1985-1990," Economic Development and Cultural Change, University of Chicago Press, vol. 42(4), pages 689-717, July.
    3. Jaime Saavedra & Alberto Chong, 1999. "Structural reform, institutions and earnings: Evidence from the formal and informal sectors in urban Peru," Journal of Development Studies, Taylor & Francis Journals, vol. 35(4), pages 95-116.
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