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The Neighborhood Impacts of Local Infrastructure Investment: Evidence from Urban Mexico

Author

Listed:
  • Craig McIntosh
  • Tito Alegría
  • Gerardo Ordóñez
  • René Zenteno

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.

Suggested Citation

  • Craig McIntosh & Tito Alegría & Gerardo Ordóñez & René Zenteno, 2018. "The Neighborhood Impacts of Local Infrastructure Investment: Evidence from Urban Mexico," American Economic Journal: Applied Economics, American Economic Association, vol. 10(3), pages 263-286, July.
    • Handle: RePEc:aea:aejapp:v:10:y:2018:i:3:p:263-86
    Note: DOI: 10.1257/app.20160429
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    Citations

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    Cited by:

    1. Federico A. Bugni & Mengsi Gao, 2021. "Inference under Covariate-Adaptive Randomization with Imperfect Compliance," Papers 2102.03937, arXiv.org, revised Jul 2023.
    2. Posada, Héctor M. & García-Suaza, Andres, 2022. "Transit infrastructure and informal housing: Assessing an expansion of Medellín's Metrocable system," Transport Policy, Elsevier, vol. 128(C), pages 209-228.
    3. Awaworyi Churchill, Sefa & Baako, Kingsley Tetteh & Mintah, Kwabena & Zhang, Quanda, 2021. "Transport infrastructure and house prices in the long run," Transport Policy, Elsevier, vol. 112(C), pages 1-12.
    4. Bugni, Federico A. & Gao, Mengsi, 2023. "Inference under covariate-adaptive randomization with imperfect compliance," Journal of Econometrics, Elsevier, vol. 237(1).
    5. Henson, Rosie Mae & Ortigoza, Ana & Martinez-Folgar, Kevin & Baeza, Fernando & Caiaffa, Waleska & Vives Vergara, Alejandra & Diez Roux, Ana V. & Lovasi, Gina, 2020. "Evaluating the health effects of place-based slum upgrading physical environment interventions: A systematic review (2012–2018)," Social Science & Medicine, Elsevier, vol. 261(C).
    6. Francisco Benita, 2019. "A New Measure of Transport Disadvantage for the Developing World Using Free Smartphone Data," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 145(1), pages 415-435, August.
    7. Francisco Benita, 2022. "Associations Between Street Connectivity and Poverty," Networks and Spatial Economics, Springer, vol. 22(1), pages 181-201, March.
    8. Anne Brockmeyer & Francisco Garfias & Juan Carlos Suárez Serrato, 2024. "The Fiscal Contract up Close: Experimental Evidence from Mexico City," CESifo Working Paper Series 11270, CESifo.

    More about this item

    JEL classification:

    • H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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    This item is featured on the following reading lists, Wikipedia, or ReplicationWiki pages:
    1. The Neighborhood Impacts of Local Infrastructure Investment: Evidence from Urban Mexico (American Economic Journal: Applied Economics 2018) in ReplicationWiki

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