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An Impact Evaluation of Chile's Progressive Housing Program

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  • Marcano, Luis
  • Ruprah, Inder J.

Abstract

This paper presents the findings of an evaluation of Chile's Progressive Housing Program (PHP), which is a public housing program that finances the purchase of a new house for lower income households. The evaluation finds that the programs' package (savings requirement, voucher and mortgage) design is inappropriate if the program is targeted to the poor. In fact the pro-poor targeting of the program was poor with high under-coverage and high leakage. Furthermore, the benefit of a minimum quality new house was not sustainable as many households slipped back into the housing shortage category overtime. This impact evaluation reveals that although the program had significant positive effects on materiality conditions (access to water, sewerage, and electricity), it had a negative effect on overcrowding, and had no discernible effects on welfare indicators (poverty, school attendance, occupation ratio).

Suggested Citation

  • Marcano, Luis & Ruprah, Inder J., 2008. "An Impact Evaluation of Chile's Progressive Housing Program," IDB Publications (Working Papers) 2896, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:2896
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    References listed on IDEAS

    as
    1. Richard Blundell & Monica Costa Dias, 2009. "Alternative Approaches to Evaluation in Empirical Microeconomics," Journal of Human Resources, University of Wisconsin Press, vol. 44(3).
    2. Luis Marcano & Inder Ruprah, 2011. "Incapacity to pay or moral hazard? Public mortgage delinquency rates in Chile," Applied Economics Letters, Taylor & Francis Journals, vol. 18(11), pages 1015-1020.
    3. Edgar O. Olsen, 2000. "The Cost-Effectiveness of Alternative Methods of Delivering Housing Subsidies," Virginia Economics Online Papers 351, University of Virginia, Department of Economics.
    4. Inder J. Ruprah & Luis Marcano, 2007. "A Meta-Impact Evaluation of Social Housing Programs: The Chilean Case," IDB Publications (Working Papers) 33418, Inter-American Development Bank.
    5. Ravallion, Martin, 2007. "How relevant is targeting to the success of an antipoverty program ?," Policy Research Working Paper Series 4385, The World Bank.
    6. Luis Marcano & Inder J. Ruprah, 2008. "Incapacity to Pay or Moral Hazard? Public Mortgage Rates Delinquency in Chile," OVE Working Papers 0308, Inter-American Development Bank, Office of Evaluation and Oversight (OVE).
    7. Inder J Ruprah & Luis T Marcano, 2007. "A Meta-Impact Evaluation of Social Housing Programs: The Chilean Case," OVE Working Papers 0207, Inter-American Development Bank, Office of Evaluation and Oversight (OVE).
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    Cited by:

    1. Hilary Thomson & Siân Thomas & Eva Sellström & Mark Petticrew, 2013. "Housing Improvements for Health and Associated Socio‐Economic Outcomes: A Systematic Review," Campbell Systematic Reviews, John Wiley & Sons, vol. 9(1), pages 1-348.

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    More about this item

    Keywords

    WP-06/08;

    JEL classification:

    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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