The Neighborhood Impacts of Local Infrastructure Investment: Evidence from Urban Mexico
American Economic Journal: Applied Economics
vol. 10,
no. 3, July 2018
(pp. 263-86)
(Complimentary)
Abstract
This paper reports on the results of a large infrastructure investment experiment in which $68 million in spending was randomly allocated across a set of low-income urban neighborhoods in Mexico. We show that the program resulted in substantial improvements in access to infrastructure and increases in private investment in housing. While a pre-committed index of social capital did not improve, we find an apparent decrease in the incidence of personal assault and teen misbehavior in neighborhoods where investments were made. The program increased the aggregate real estate value in program neighborhoods by two dollars for every dollar invested.Citation
McIntosh, Craig, Tito Alegría, Gerardo Ordóñez, and René Zenteno. 2018. "The Neighborhood Impacts of Local Infrastructure Investment: Evidence from Urban Mexico." American Economic Journal: Applied Economics, 10 (3): 263-86. DOI: 10.1257/app.20160429Additional Materials
JEL Classification
- H76 State and Local Government: Other Expenditure Categories
- O18 Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
- R31 Housing Supply and Markets
- R53 Public Facility Location Analysis; Public Investment and Capital Stock
- Z13 Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
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