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Household Welfare Effects of Street Paving in Mexico
Last registered on July 11, 2016

Pre-Trial

Trial Information
General Information
Title
Household Welfare Effects of Street Paving in Mexico
RCT ID
AEARCTR-0001300
Initial registration date
July 11, 2016
Last updated
July 11, 2016 11:10 AM EDT
Location(s)
Region
Primary Investigator
Affiliation
UC-Berkeley
Other Primary Investigator(s)
PI Affiliation
University of Oxford
Additional Trial Information
Status
Completed
Start date
2006-02-01
End date
2009-03-31
Secondary IDs
Abstract
We provide the first experimental estimation of the effects of the supply of publicly financed urban infrastructure on property values. Using random allocation of first-time street asphalting of residential streets located in peripheral neighborhoods in Mexico, we show that within two years of the intervention, households are able to transform their increased property wealth into significantly larger rates of vehicle ownership, household appliances, and home improvements. Increased consumption is made possible by both credit use and less saving. A cost-benefit analysis indicates that the valuation of street asphalting as capitalized into property values is about as large as construction costs.
External Link(s)
Registration Citation
Citation
Gonzalez-Navarro, Marco and Climent Quintana-Domeque. 2016. "Household Welfare Effects of Street Paving in Mexico." AEA RCT Registry. July 11. https://doi.org/10.1257/rct.1300-1.0
Former Citation
Gonzalez-Navarro, Marco, Marco Gonzalez-Navarro and Climent Quintana-Domeque. 2016. "Household Welfare Effects of Street Paving in Mexico." AEA RCT Registry. July 11. https://www.socialscienceregistry.org/trials/1300/history/9366
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Experimental Details
Interventions
Intervention(s)
Given that the administration could afford to pay for only 28 of the 56 paving projects, we assigned 28 streets to intent to treatment and 28 to control using simple randomization by means of a random number generator function in MS Excel. The intervention consisted of the first-time asphalting of residential non-arterial streets, varying in width from 8-15 meters, and allowing for two lanes of vehicle traffic and one or two lanes for parking. Data was collected via a household survey, before and after the project, as well as professional appraisals of residential-property values in 2006 and 2009. The target population of the survey consisted of all occupied residential structures on the streets that were selected for the experiment, including 1,231 households in 2006 and 1,083 households in 2009.
Intervention Start Date
2007-01-01
Intervention End Date
2009-03-31
Primary Outcomes
Primary Outcomes (end points)
Impacts on Consumption and Credit, Impacts on Transportation and Labor Market Outcomes, Impacts on Property Values, Impacts on Satisfaction with the Government
Primary Outcomes (explanation)
Secondary Outcomes
Secondary Outcomes (end points)
Secondary Outcomes (explanation)
Experimental Design
Experimental Design
The municipality did not publicly announce the list of experimental street projects, thus participation in the program was revealed to neighbors with the arrival of measurement teams, construction crews, and machinery. This eliminated potential biases at baseline from households anticipating rising housing values due to the project.
Experimental Design Details
Randomization Method
Assigned half to intent to treatment and half to control using simple randomization by means of a random number generator function in MS Excel.
Randomization Unit
Street projects each defined by the city as a set of unpaved streets connecting at least once to the paved street network at baseline.
Was the treatment clustered?
Yes
Experiment Characteristics
Sample size: planned number of clusters
56 street pavement project clusters
Sample size: planned number of observations
The baseline survey in 2006 was administered to 1,231 households living in 1,193 dwellings, with a response rate of 94%. In 2009, 1,083 households were interviewed. In 900 cases we found the same household that we had interviewed in 2006, and in 156 cases we found that a new household was in residence. All families living in residences built between baseline and follow-up were also interviewed (N = 27).
Sample size (or number of clusters) by treatment arms
28 streets to assigned to intent to treat and 28 assigned to control.
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
IRB
INSTITUTIONAL REVIEW BOARDS (IRBs)
IRB Name
Princeton University Institutional Review Panel
IRB Approval Date
2005-12-12
IRB Approval Number
3104
Post-Trial
Post Trial Information
Study Withdrawal
Intervention
Is the intervention completed?
Yes
Intervention Completion Date
March 31, 2009, 12:00 AM +00:00
Is data collection complete?
Yes
Data Collection Completion Date
March 31, 2009, 12:00 AM +00:00
Final Sample Size: Number of Clusters (Unit of Randomization)
56 street pavement projects
Was attrition correlated with treatment status?
No
Final Sample Size: Total Number of Observations
By the time of the follow-up survey in 2009, 271 baseline households (in our original sample) had moved out, while 183 immigrant households (not in our original sample) moved into the experimental streets. Completed in 2009 were 1,083 households.
Final Sample Size (or Number of Clusters) by Treatment Arms
By February 2009, right before our follow-up survey, seventeen of the streets in the treatment group had been completely paved and the other eleven were under way (the municipal government attributed the delays to foul weather and various technical difficulties). The administration did fulfill the requirement of not paving streets assigned to the control group.
Reports and Papers
Preliminary Reports
Relevant Papers
Abstract
We provide the first experimental estimation of the effects of the supply of publicly financed urban infrastructure on property values. Using random allocation of first-time street asphalting of residential streets located in peripheral neighborhoods in Mexico, we show that within two years of the intervention, households are able to transform their increased property wealth into significantly larger rates of vehicle ownership, household appliances, and home improvements. Increased consumption is made possible by both credit use and less saving. A cost-benefit analysis indicates that the valuation of street asphalting as capitalized into property values is about as large as construction costs.
Citation
Paving Streets for the Poor: Experimental Analysis of Infrastructure Effects Marco Gonzalez-Navarro and Climent Quintana-Domeque Review of Economics and Statistics 2016 Vol. 98, Num. 2, pp. 254-267 .
Abstract
ONLINE APPENDIX (Supplementary Material)
Citation
The Review of Economics and Statistics, May 2016, 98(2): 254–267
© 2016 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology doi:10.1162/REST_a_00553