IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp12220.html
   My bibliography  Save this paper

Policy in the Pipeline: Identifying Regional Public Investment Priorities Using a Natural Experiment

Author

Listed:
  • Myck, Michal

    (Centre for Economic Analysis, CenEA)

  • Najsztub, Mateusz

    (Centre for Economic Analysis, CenEA)

Abstract

We identify regional public investment priorities by studying the development of the water pipe system in the largest district in Poland. For this purpose, we take advantage of a major administrative re-form, implemented on 1 January 1999, which substantially changed the structure of Polish local government and reduced the number of top-tier administrative regions from 49 to 16. We treat the reform as a natural experiment, and apply the difference-in-differences approach to study developments along the boundary of the new Mazovian voivodeship. We find strong and positive implications for the development of the water pipe system in municipalities within the Mazovian voivodeship compared with those just outside its boundaries. The overall post-reform difference in the length of the total water pipe network is 25% and the difference in the per-capita length of the network is 30%. Local public investment priorities at the voivodeship level, potentially related to effective use of EU funds, are the most likely determinants of these differences.

Suggested Citation

  • Myck, Michal & Najsztub, Mateusz, 2019. "Policy in the Pipeline: Identifying Regional Public Investment Priorities Using a Natural Experiment," IZA Discussion Papers 12220, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp12220
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp12220.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alfredo Marvão Pereira & Rui M. Pereira, 2015. "Is All Infrastructure Investment Created Equal? The Case of Portugal," Working Papers 156, Department of Economics, College of William and Mary.
    2. Francesco Aiello & Alfonsina Iona & Leone Leonida, 2012. "Regional infrastructure and firm investment: theory and empirical evidence for Italy," Empirical Economics, Springer, vol. 42(3), pages 835-862, June.
    3. Daniel Bennett, 2012. "Does Clean Water Make You Dirty?: Water Supply and Sanitation in the Philippines," Journal of Human Resources, University of Wisconsin Press, vol. 47(1), pages 146-173.
    4. A. Colin Cameron & Douglas L. Miller, 2015. "A Practitioner’s Guide to Cluster-Robust Inference," Journal of Human Resources, University of Wisconsin Press, vol. 50(2), pages 317-372.
    5. Michał Myck & Mateusz Najsztub, 2020. "Implications of the Polish 1999 administrative reform for regional socio‐economic development," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 28(4), pages 559-579, October.
    6. Brender, Adi, 2003. "The effect of fiscal performance on local government election results in Israel: 1989-1998," Journal of Public Economics, Elsevier, vol. 87(9-10), pages 2187-2205, September.
    7. Esther Duflo & Michael Greenstone & Raymond Guiteras & Thomas Clasen, 2015. "Toilets Can Work: Short and Medium Run Health Impacts of Addressing Complementarities and Externalities in Water and Sanitation," NBER Working Papers 21521, National Bureau of Economic Research, Inc.
    8. Alfredo M. Pereira, 2000. "Is All Public Capital Created Equal?," The Review of Economics and Statistics, MIT Press, vol. 82(3), pages 513-518, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Augsburg, Britta & Rodríguez-Lesmes, Paul Andrés, 2018. "Sanitation and child health in India," World Development, Elsevier, vol. 107(C), pages 22-39.
    2. Sonia R. Bhalotra & Alberto Diaz-Cayeros & Grant Miller & Alfonso Miranda & Atheendar S. Venkataramani, 2017. "Urban Water Disinfection and Mortality Decline in Developing Countries," NBER Working Papers 23239, National Bureau of Economic Research, Inc.
    3. Burret, Heiko T. & Feld, Lars P., 2018. "(Un-)intended effects of fiscal rules," European Journal of Political Economy, Elsevier, vol. 52(C), pages 166-191.
    4. Knutsson, Daniel, 2017. "Water Improvement and Health: Historical Evidence on the Effect of Filtering Water on Urban Mortality," Research Papers in Economics 2017:2, Stockholm University, Department of Economics.
    5. Knutsson, Daniel, 2020. "The Effect of Water Filtration on Cholera Mortality," Working Paper Series 1346, Research Institute of Industrial Economics.
    6. Kazuki Motohashi, 2023. "Unintended Consequences of Sanitation Investment: Negative Externalities on Water Quality and Health in India," ISER Discussion Paper 1210, Institute of Social and Economic Research, Osaka University.
    7. Aurélia Buchs & Nils Soguel, 2022. "Fiscal performance and the re-election of finance ministers–evidence from the Swiss cantons," Public Choice, Springer, vol. 191(1), pages 31-49, April.
    8. Clément de Chaisemartin & Jaime Ramirez-Cuellar, 2024. "At What Level Should One Cluster Standard Errors in Paired and Small-Strata Experiments?," American Economic Journal: Applied Economics, American Economic Association, vol. 16(1), pages 193-212, January.
    9. Friedrich, Sarah & Pauly, Markus, 2018. "MATS: Inference for potentially singular and heteroscedastic MANOVA," Journal of Multivariate Analysis, Elsevier, vol. 165(C), pages 166-179.
    10. Borisova, Ekaterina & Gründler, Klaus & Hackenberger, Armin & Harter, Anina & Potrafke, Niklas & Schoors, Koen, 2023. "Crisis experience and the deep roots of COVID-19 vaccination preferences," European Economic Review, Elsevier, vol. 160(C).
    11. Berthélemy Michel & Bonev Petyo & Dussaux Damien & Söderberg Magnus, 2019. "Methods for strengthening a weak instrument in the case of a persistent treatment," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 23(1), pages 1-30, February.
    12. Peters, Jörg, 2016. "Infrastructure and poverty in Sub-Saharan Africa: A review," Ruhr Economic Papers 628, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    13. Carrieri, Vincenzo & Madio, Leonardo & Principe, Francesco, 2019. "Light cannabis and organized crime: Evidence from (unintended) liberalization in Italy," European Economic Review, Elsevier, vol. 113(C), pages 63-76.
    14. Jung, Haeil & Kim, Jun Hyung & Hong, Gihyeon, 2023. "Impacts of the COVID-19 crisis on single-person households in South Korea," Journal of Asian Economics, Elsevier, vol. 84(C).
    15. Rodrigo Martins & Francisco Veiga, 2013. "Economic voting in Portuguese municipal elections," Public Choice, Springer, vol. 155(3), pages 317-334, June.
    16. Cain Polidano & Justin van de Ven & Sarah Voitchovsky, 2017. "The Power of Self-Interest: Effects of Education and Training Entitlements in Later-Life," Melbourne Institute Working Paper Series wp2017n12, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    17. Alfredo Pereira & Jorge Andraz, 2012. "On the economic and budgetary effects of investments in SCUTS: the Portuguese toll-free highways," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 48(1), pages 321-338, February.
    18. Calomiris, Charles W. & Larrain, Mauricio & Schmukler, Sergio L., 2021. "Capital inflows, equity issuance activity, and corporate investment," Journal of Financial Intermediation, Elsevier, vol. 46(C).
    19. Jorge Cuartas, 2017. "Neighborhood Crime Undermines Parenting: Violence in the Vicinity of Households as a Predictor of Aggressive Discipline," Documentos de trabajo 17646, Escuela de Gobierno - Universidad de los Andes.
    20. José Valentim Machado Vicente & Jaqueline Terra Moura Marins, 2019. "A Volatility Smile-Based Uncertainty Index," Working Papers Series 502, Central Bank of Brazil, Research Department.

    More about this item

    Keywords

    public investment policy; water pipe system; administrative reform;
    All these keywords.

    JEL classification:

    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • P35 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Public Finance

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp12220. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.