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Social Transfers and Growth: Evidence from Luminosity Data

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  • Juan M. Villa

Abstract

The effects of social transfers on growth are still unclear. The limitations of national accounts at subnational levels in developing countries have confined the analysis to the use of simulation models and household-level experimental data. This article contributes to the empirical literature by assessing the effects of Colombia's Familias en Accion, a human development cash transfer program, on municipal growth rates and per capita growth. The staggered introduction of the program in 2001-4 facilitated an identification strategy based on a difference-in-differences estimation. The lack of subnational GDP data is tackled by using luminosity data generated by satellites orbiting the earth, which have demonstrated to be a suitable proxy for economic growth. The results show that the program generates significant positive effects on municipal growth rates.

Suggested Citation

  • Juan M. Villa, 2016. "Social Transfers and Growth: Evidence from Luminosity Data," Economic Development and Cultural Change, University of Chicago Press, vol. 65(1), pages 39-61.
    • Handle: RePEc:ucp:ecdecc:doi:10.1086/687548
    DOI: 10.1086/687548
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    Cited by:

    1. Pena, Paola & Urrego, Joaquin & Villa, Juan M., 2017. "Civil Conflict and Conditional Cash Transfers: Effects on Demobilization," World Development, Elsevier, vol. 99(C), pages 431-440.
    2. Malerba, Daniele, 2020. "Poverty alleviation and local environmental degradation: An empirical analysis in Colombia," World Development, Elsevier, vol. 127(C).
    3. Francis Rathinam & Sayak Khatua & Zeba Siddiqui & Manya Malik & Pallavi Duggal & Samantha Watson & Xavier Vollenweider, 2021. "Using big data for evaluating development outcomes: A systematic map," Campbell Systematic Reviews, John Wiley & Sons, vol. 17(3), September.
    4. Juan M. Villa, 2018. "The continuous treatment effect of an antipoverty program on children's educational attainment: Colombia's Familias en Accion," Review of Development Economics, Wiley Blackwell, vol. 22(3), pages 1239-1262, August.
    5. John Gibson & Susan Olivia & Geua Boe‐Gibson, 2020. "Night Lights In Economics: Sources And Uses," Journal of Economic Surveys, Wiley Blackwell, vol. 34(5), pages 955-980, December.
    6. repec:lic:licosd:41920 is not listed on IDEAS
    7. Thomas Ferreira, 2018. "Using satellite data to track socio-economic outcomes: a case study of Namibia," Working Papers 12/2018, Stellenbosch University, Department of Economics.

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