TY  - RPRT
        AU  - Pitt, Mark M.
AU  - Menon, Nidhiya
        TI  - Spatial Decentralization and Program Evaluation: Theory and an Example from Indonesia
        PY  - 2010/Sep/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 5208
        UR  - https://www.iza.org/index.php/publications/dp5208
        AB  - 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.
        KW  - instrumental variables
KW  - program evaluation
KW  - spatial decentralization
KW  - Indonesia
        ER  -