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What difference can performance ratings make? Difference-in-difference estimates of impact on local government responsiveness in the Philippines

Author

Listed:
  • Joseph J. Capuno

    (U.P. School of Economics, Diliman, Quezon City)

  • Maria Melody S. Garcia

    (University of Rome – Tor Vergata)

Abstract

In many countries that have decentralized, improving the accountability of local officials is increasingly emphasized to make them more responsive to their constituents’ needs. This paper provides evidence that the public announcement of performance ratings can induce local governments to become responsive. The evidence is based on application of a difference-in-difference method on a unique household-level dataset collected during the three-year pilot test of a rating system in 12 municipalities and cities in the Philippines. The results are consistent with the predictions of political agency models of incumbent behavior. Some policy guidelines on the design and implementation performance benchmarks are made.

Suggested Citation

  • Joseph J. Capuno & Maria Melody S. Garcia, 2009. "What difference can performance ratings make? Difference-in-difference estimates of impact on local government responsiveness in the Philippines," UP School of Economics Discussion Papers 200908, University of the Philippines School of Economics.
    • Handle: RePEc:phs:dpaper:200908
    as

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    File URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/86/77
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    References listed on IDEAS

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    More about this item

    Keywords

    Local governments; political agency; performance ratings; decentralization;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

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