IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

Do people invest in local public goods with long-term benefits: Experimental evidence from a shanty town in Peru

  • De Hoop, Thomas
  • Van Kempen, Luuk
  • Fort, Ricardo

This paper discusses voluntary contributions to health education in a shanty town in Peru, using a new experimental setup to identify voluntary contributions to local public goods. The experiment enables individuals to contribute to a health education meeting facilitated by an NGO, which they know will only be organised if the cumulative investment level exceeds a certain threshold value. In contrast to expectations of aid distributors, individuals contributed a substantial amount of money, despite the long-term nature of the health benefits from health education. High discount rates only seem to have had a detrimental effect on investment in a poorer subsample. Results from a complementary experiment, which identifies donations to a nutrition program, suggest that positive beliefs about short-term benefits from health education in the form of learning effects have played an important role in the investment decision. The results indicate that channelling decision-making power about public good provision to beneficiaries not necessarily implies a crowding out of investment in local public goods with long-term benefits. Hence, particular attention is given to the potential role of cash transfers in the financing of local public goods.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: https://mpra.ub.uni-muenchen.de/24968/1/MPRA_paper_24968.pdf
File Function: original version
Download Restriction: no

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 24968.

as
in new window

Length:
Date of creation: Jul 2010
Date of revision:
Handle: RePEc:pra:mprapa:24968
Contact details of provider: Postal:
Ludwigstraße 33, D-80539 Munich, Germany

Phone: +49-(0)89-2180-2459
Fax: +49-(0)89-2180-992459
Web page: https://mpra.ub.uni-muenchen.de

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Cardenas, Juan-Camilo, 2004. "Norms from outside and from inside: an experimental analysis on the governance of local ecosystems," Forest Policy and Economics, Elsevier, vol. 6(3-4), pages 229-241, June.
  2. John List & Daniel Rondeau, 2008. "Matching and challenge gifts to charity: Evidence from laboratory and natural field experiments," Natural Field Experiments 00330, The Field Experiments Website.
  3. John List & David Reiley, 2008. "Field experiments," Artefactual Field Experiments 00091, The Field Experiments Website.
  4. David Laibson, 1997. "Golden Eggs and Hyperbolic Discounting," The Quarterly Journal of Economics, Oxford University Press, vol. 112(2), pages 443-478.
  5. Julian Rauchdobler & Rupert Sausgruber & Jean-Robert Tyran, 2010. "Voting on Thresholds for Public Goods: Experimental Evidence," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 66(1), pages 34-64, March.
  6. Benjamin A. Olken, 2008. "Direct Democracy and Local Public Goods: Evidence from a Field Experiment in Indonesia," NBER Working Papers 14123, National Bureau of Economic Research, Inc.
  7. Hoffmann, Vivian & Barrett, Christopher B. & Just, David R., 2009. "Do Free Goods Stick to Poor Households? Experimental Evidence on Insecticide Treated Bednets," World Development, Elsevier, vol. 37(3), pages 607-617, March.
  8. Kremer, Michael Robert & Miguel, Edward A., 2004. "The Illusion of Sustainability," Center for International and Development Economics Research, Working Paper Series qt94p8w1d7, Center for International and Development Economics Research, Institute for Business and Economic Research, UC Berkeley.
  9. Shane Frederick & George Loewenstein & Ted O'Donoghue, 2002. "Time Discounting and Time Preference: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 40(2), pages 351-401, June.
  10. David Stifel & Harold Alderman, 2006. "The "Glass of Milk" Subsidy Program and Malnutrition in Peru," World Bank Economic Review, World Bank Group, vol. 20(3), pages 421-448.
  11. R. Isaac & David Schmidtz & James Walker, 1989. "The assurance problem in a laboratory market," Public Choice, Springer, vol. 62(3), pages 217-236, September.
  12. Jeffery Carpenter & Juan Camilo Cardenas, 2006. "Behavioural Development Economics: Lessons from field labs in the developing world," Middlebury College Working Paper Series 0616, Middlebury College, Department of Economics.
  13. Fredric Jacobsson & Magnus Johannesson & Lars Borgquist, 2007. "Is Altruism Paternalistic?," Economic Journal, Royal Economic Society, vol. 117(520), pages 761-781, 04.
  14. Borghi, Josephine & Jan, Stephen, 2008. "Measuring the benefits of health promotion programmes: Application of the contingent valuation method," Health Policy, Elsevier, vol. 87(2), pages 235-248, August.
  15. Rondeau, Daniel & D. Schulze, William & Poe, Gregory L., 1999. "Voluntary revelation of the demand for public goods using a provision point mechanism," Journal of Public Economics, Elsevier, vol. 72(3), pages 455-470, June.
  16. Ghazala Mansuri, 2004. "Community-Based and -Driven Development: A Critical Review," World Bank Research Observer, World Bank Group, vol. 19(1), pages 1-39.
  17. Brown-Kruse, Jamie & Hummels, David, 1993. "Gender effects in laboratory public goods contribution : Do individuals put their money where their mouth is?," Journal of Economic Behavior & Organization, Elsevier, vol. 22(3), pages 255-267, December.
  18. John Hoddinott, 2002. "Participation and Poverty Reduction: An Analytical Framework and Overview of the Issues," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 11(1), pages 146-168, March.
  19. Esther Duflo & Michael Kremer & Jonathan Robinson, 2009. "Nudging Farmers to Use Fertilizer: Theory and Experimental Evidence from Kenya," NBER Working Papers 15131, National Bureau of Economic Research, Inc.
  20. Bohm, Peter, 1972. "Estimating demand for public goods: An experiment," European Economic Review, Elsevier, vol. 3(2), pages 111-130.
  21. Esther Duflo & Michael Kremer & Jonathan Robinson, 2008. "How High Are Rates of Return to Fertilizer? Evidence from Field Experiments in Kenya," American Economic Review, American Economic Association, vol. 98(2), pages 482-88, May.
  22. Leandro Carvalho, 2010. "Poverty and Time Preference," Working Papers 759, RAND Corporation.
  23. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-77, June.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:24968. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.