Spatial Decentralization and Program Evaluation: Theory and an Example from Indonesia

This paper proposes a novel instrumental variable method for program evaluation that only requires a single cross-section of data on the spatial intensity of programs and outcomes. The instruments are derived from a simple theoretical model of government decision-making in which governments are responsive to the attributes of places and their populations, rather than to the attributes of individuals, in making allocation decisions across space, and have a social welfare function that is spatially weakly separable, that is, that the budgeting process is multi-stage with respect to administrative districts and sub-districts. The spatial instrumental variables model is then estimated and tested by GMM with a single cross-section of Indonesian census data. The results offer support to the identification strategy proposed.spatial decentralization, program evaluation, instrumental variables, Indonesia

Spatial Decentralization and Program Evaluation: Theory and an Example from Indonesia

This paper proposes a novel instrumental variable method for program evaluation that only requires a single cross-section of data on the spatial intensity of programs and outcomes. The instruments are derived from a simple theoretical model of government decision-making in which governments are responsive to the attributes of places and their populations, rather than to the attributes of individuals, in making allocation decisions across space, and have a social welfare function that is spatially weakly separable, that is, that the budgeting process is multi-stage with respect to administrative districts and sub-districts. The spatial instrumental variables model is then estimated and tested by GMM with a single cross-section of Indonesian census data. The results offer support to the identification strategy proposed.Spatial Decentralization, Program Evaluation, Instrumental Variables, Indonesia

Women’s Access to Land and Economic Empowerment in Selected Nigerian Communities

Despite various land policies that prescribe rights to land in many societies, women remain marginalized in access to and economic utilization of land. This is widespread in rural communities where informal institutions such as customs and traditions subsist. In most of these communities, the patriarchal structure of families is championed by the informal institutions that support male dominance. This study focuses on economic empowerment of women as it encapsulates sustainable wealth of women. It provides answers to two main research questions: a) what kind of relationship exists between land access and empowerment of women? And b) how important are individual and household attributes in informing women’s empowerment through land rights? The empirical results of this study provide some new insights as they demonstrate how land rights influence women’s economic empowerment. The study also finds that women’s earning capacity reduces when they take up the responsibility of becoming the heads of households and that their income increases as they become more educate

Non-linearities in returns to participation in Grameen Bank programs

This paper studies the benefits of participation in micro-finance programs, where benefits are measured in terms of the ability to smooth the effect of seasonal shocks that cause consumption fluctuations. It is shown that although membership in these programs is an effective instrument in combating inter-seasonal consumption differences, there is a threshold level of length of participation beyond which benefits begin to diminish. Returns from membership are modelled using an Euler equation approach. Fixed effects non-linear least squares estimation of parameters using data from 24 villages of the Grameen Bank suggests that returns to participation, as measured by the ability to smooth seasonal shocks, begin to decline after approximately two years of membership. This implies that membership alone no longer has a mitigating marginal effect on seasonal shocks to per capita consumption after four years of participation. Such patterns suggest that the ability to smooth consumption as a function of length of membership, need not accrue indefinitely in a linear fashion.

Learning, diversification and the nature of risk

Bayesian learning, Risk, Diversification, D81, D83,