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Assessing Benefits Of Slum Upgrading Programs In Second-Best Settings
Open accessAbstract
Slum upgrading programs are being used by national and city governments in many countries to improve the welfare of households living in slum and squatter settlements.These programs typically include a combination of improvements in neighborhood infrastructure, land tenure, and building quality.In this paper, we develop a dynamic general equilibrium model to compare the effectiveness of alternative slum upgrading instruments in a second-best setting with distortions in the land and credit markets.We numerically test the model using data from three Brazilian cities and find that the performance of in situ slum upgrading depends on the severity of land and credit market distortions, and how complementary policy initiatives are being implemented to correct for these problems.Pre-existing land supply and credit market distortions reduce the benefit-cost ratios across interventions, and change the rank ordering of preferred interventions.In the light of these findings, it appears that partial equilibrium analysis used in typical costbenefit work overstates the stream of net benefits from upgrading interventions, and may in fact propose a misleading sequence of interventions.
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From Slum upgrading strategies involving physical environment and infrastructure interventions and their effects on health and socio-economic outcomes (2013) · cites this paper as Dasgupta 2006
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Turley, R., Saith, R., Bhan, N., Rehfuess, E., & Carter, B. (2013) · Cochrane Database of Systematic Reviews · doi:10.1002/14651858.cd010067.pub2 · Cited by 153
Metadata
- Authors
- Dasgupta, B., & Lall, S. V.
- Affiliations
- World Bank (US)
- Corresponding author
- Lall, Somik V.
- Venue
- World Bank, Washington, DC eBooks
- Publisher
- World Bank, Washington, DC
- Published
- 2006-08
- OpenAlex
- W4234900782
- Cited by
- 4
- References
- 0
- Citations by year
- 2018: 1 · 2015: 1 · 2013: 1
- Type
- report
- Language
- en
- Open access
- bronze
- doi.org
- Locations
- World Bank, Washington, DC eBooks (publishedVersion)
- The World Bank Open Knowledge Repository (World Bank) (submittedVersion, cc-by)
- Topics
- Social Sciences › Urban Studies › Urban and Rural Development Challenges
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Housing Market and Economics
- Social Sciences › Urban Studies › Latin American Urban Studies
- Keywords
- slum upgrading, second-best policy, in-situ upgrading, dynamic general equilibrium model, cost-benefit analysis, land supply, construction quality, urban infrastructure, Brazil
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