Publications by Year: 2016

Pande, Rohini, Sean Lewis-Faupel, Yusuf Neggers, and Benjamin A. Olken. 2016. “ Can Electronic Procurement Improve Infrastructure Provision? Evidence from Public Works in India and Indonesia.” American Economic Journal: Economic Policy 8 (3): 258-283. Publisher's Version can_electronic_procurement_pande.pdf
Hanna, Rema, and Paulina Oliva. 2016. “Implications of Climate Change for Children in Developing Countries.” Future of Children 26 (1). Publisher's Version implications_of_climate_hanna.pdf
Pande, Rohini, Timothy Besley, Jessica Leight, and Vijayendra Rao. 2016. “Long-Run Impacts of Land Regulation: Evidence from Tenancy Reform in India .” Journal of Development Economics 118: 72-87. Publisher's Version
Khwaja, Asim, Rajkamal Iyer, Erzo F.P. Luttmer, and Kelly Shue. 2016. “Screening Peers Softly: Inferring the Quality of Small Borrowers.” Management Science 62 (6): 1554-1577. Publisher's Version screening_peers_softly_khwaja.pdf
Pande, Rohini, Dean Karlan, Jake Kendall, Rebecca Mann, Tavneet Suri, and Jonathan Zinman. 2016. “Research and Impacts of Digital Financial Services”. Publisher's VersionAbstract

A growing body of rigorous research shows that financial services innovations can have important positive impacts on wellbeing, but also that many do not. We first describe the latest evidence on what works in financial inclusion. Second, we summarize research on key financial market failures and on products and innovations that address specific mechanisms underlying them. We conclude by highlighting open areas for future work.

Pande, Rohini, Abraham Holland, and Erica Field. 2016. “Microfinance: Points of Promise.” Contemporary and Emerging Issues, for W.E. Upjohn Institute for Employment Research. Ed. Jean Kimmel.
Pande, Rohini, Erica Field, Seema Jayachandran, and Natalia Rigol. 2016. “Friendship at Work:Can Peer E ffects Catalyze Female Entrepreneurship?.” American Economic Journal: Public Policy.Abstract

Does the lack of peers contribute to the observed gender gap in entrepreneurial success, and is the constraint stronger for women facing more restrictive social norms? We ordered two days of business counseling to a random sample of customers of India's largest women's bank. A random subsample was invited to attend with a friend. The intervention had a significant immediate impact on participants' business activity, but only if they were trained in the presence of a friend. Four months later, those trained with a friend were more likely to have taken out business loans, were less likely to be housewives, and reported increased business activity and higher household income. The positive impacts of training with a friend were stronger among women from religious or caste groups with social norms that restrict female mobility.

Khwaja, Asim, Tahir Andrabi, and Jishnu Das. 2016. “Delivering Education: A Pragmatic Framework for Improving Education in Low-Income Countries.” Handbook of International Education.Abstract

Even as primary school enrollments have increased in most low income countries levels of learning remain low and highly unequal. Responding to greater parental demand for quality, low cost private schools have emerged as one of the fastest growing schooling options, challenging the monopoly of state provided education and broadening the set of educational providers. Historically, the rise of private schooling is always deeply intertwined with debates around who chooses what schooling is about and who represents the interests of children. We believe that this time is no different. But rather than first resolve the question of how child welfare is to be adjudicated, we argue instead for a `pragmatic framework’. In our pragmatic framework, policy takes into account the full schooling environment which includes public, private and other types of providers and is actively concerned with first alleviating constraints that prohibit parents and schools from fulfilling their own stated objectives. Using policy actionable experiments as examples, we show that the pragmatic approach can lead to better schooling for children: Alleviating constraints by providing better information, better access to finance or greater access to skilled teachers brings in more children into school and increases test scores in language and Mathematics. These areas of improvement are very similar to those where there is already abroad societal consensus that improvement is required.

Hanna, Rema, Eva Arceo, and Paulina Oliva. 2016. “Does the Effect of Pollution on Infant Mortality Differ Between Developing and Developed Countries? Evidence from Mexico City.” The Economic Journal 126 (591): 257-280. Publisher's VersionAbstract

Much of what we know about the marginal effect of pollution on infant mortality is derived from developed country data. However, given the lower levels of air pollution in developed countries, these estimates may not be externally valid to the developing country context if there is a nonlinear dose relationship between pollution and mortality or if the costs of avoidance behavior differs considerably between the two contexts. In this paper, we estimate the relationship between pollution and infant mortality using data from Mexico. We find that an increase of 1 parts per billion in carbon monoxide (CO) over the last week results in 0.0032 deaths per 100,000 births, while a 1 μg/m3 increase in particulate matter (PM10) results in 0.24 infant deaths per 100,000 births. Our estimates for PM10 tend to be similar (or even smaller) than the U.S. estimates, while our findings on CO tend to be larger than those derived from the U.S. context. We provide suggestive evidence that a non-linearity in the relationship between CO and health explains this difference.

Hanna, Rema, Vivi Alatas, Abhijit Banerjee, Benjamin A. Olken, Ririn Purnamasari, and Matthew Wai-Poi. 2016. “Self-Targeting: Evidence from a Field Experiment in Indonesia.” The Journal of Political Economy 124 (2). Publisher's VersionAbstract
In this paper, we show that adding a small application cost to a social assistance program can substantially improve targeting because of the self-selection it induces. We conduct a randomized experiment within Indonesia’s Conditional Cash Transfer program that compares two of the most common methods of targeting welfare programs in the developing world: in one, beneficiaries first need to apply for the program, and then an enumerator visits them at home and determines their eligibility based on a proxy-means asset test; in the other, they are visited directly by the enumerator and automatically enrolled if they qualify based on the same proxy-means test. When applications were required, we find that the poor are more likely to apply than the rich, even conditional on whether they would pass the asset test. On net, the villages where applications were required have a much poorer group of beneficiaries than automatic enrollment villages. However, marginally increasing the cost of applying does not necessarily improve targeting: while experimentally increasing the distance to the application site reduces the number of applicants, it screens out both rich and poor in roughly equal proportions. Estimating our model of the enrollment choice suggests that our results are largely driven by the rich forecasting that they have a very small likelihood of passing the asset test, and so not bothering to apply, which in aggregate substantially improves targeting efficiency. The results suggest that the combination of the small cost and the final screening gives this class of mechanisms the ability to achieve many of the benefits of self-selection without imposing onerous ordeals on program beneficiaries.
Hanna, Rema, Esther Duflo, and Michael Greenstone. 2016. “Up in Smoke: The Influence of Household Behavior on the Long-Run Impact of Improved Cooking Stoves.” American Economic Journal: Economic Policy 8 (1): 80-114. Publisher's VersionAbstract

It is conventional wisdom that it is possible to reduce exposure to indoor air pollution, improve health outcomes, and decrease greenhouse gas emissions in rural areas of developing countries through the adoption of improved cooking stoves. This is largely supported by observational field studies and engineering or laboratory experiments. However, we provide new evidence, from a randomized control trial conducted in rural Orissa, India (one of the poorest places in India) on the benefits of a commonly used improved stove that laboratory tests showed to reduce indoor air pollution and require less fuel. We track households for up to four years after they received the stove. While we find a meaningful reduction in smoke inhalation in the first year, there is no effect over longer time horizons. We find no evidence of improvements in lung functioning or health and there is no change in fuel consumption (and presumably greenhouse gas emissions). The difference between the laboratory and field findings appears to result from households’ revealed low valuation of the stoves. Households failed to use the stoves regularly or appropriately, did not make the necessary investments to maintain them properly, and usage rates ultimately declined further over time. More broadly, this study underscores the need to test environmental and health technologies in real-world settings where behavior may temper impacts, and to test them over a long enough horizon to understand how this behavioral effect evolves over time.