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Bundling of Basic Public Services and Household Welfare in Developing Countries: An Empirical Exploration for the Case of Peru

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  • Alberto Chong
  • Jesko Hentschel
  • Jaime Saavedra

Abstract

Using panel data for Peru for the period 1994-2000, we found that increases in household welfare, as measured by changes in consumption, are larger when households receive two or more services jointly than when services are provided separately. Such increases appear to be more than proportional, as F-tests on the coefficients of the corresponding regressors confirm. Thus, we found that bundling of services may help realize welfare effects. This finding is particularly robust in the case of urban areas.

Suggested Citation

  • Alberto Chong & Jesko Hentschel & Jaime Saavedra, 2007. "Bundling of Basic Public Services and Household Welfare in Developing Countries: An Empirical Exploration for the Case of Peru," Oxford Development Studies, Taylor & Francis Journals, vol. 35(3), pages 329-346.
    • Handle: RePEc:taf:oxdevs:v:35:y:2007:i:3:p:329-346
    DOI: 10.1080/13600810701514894
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    References listed on IDEAS

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    1. Dominique van de Walle, 2003. "Are Returns to Investment Lower for the Poor? Human and Physical Capital Interactions in Rural Vietnam," Review of Development Economics, Wiley Blackwell, vol. 7(4), pages 636-653, November.
    2. Escobal D'Angelo, Javier & Ponce, Carmen, 2002. "The benefits of rural roads: enhancing income opportunities for the rural poor," Working Papers 37751, Group for the Analysis of Development (GRADE).
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