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Coordination and the poor maintenance trap: an experiment on public infrastructure in India

Author

Listed:
  • Alex Armand

    (Institute for Fiscal Studies and Nova School of Business and Economics)

  • Britta Augsburg

    (Institute for Fiscal Studies and Institute for Fiscal Studies)

  • Antonella Bancalari

    (Institute for Fiscal Studies and University of St. Andrews)

Abstract
Poorly maintained public infrastructure is common in low- and middle-income countries, with consequences for service delivery and public health. By experimentally identifying the impact of incentives for local maintenance for both providers and potential users, this paper provides one of the ?rst economic analyses of provider–user dynamics in the presence of local coordination failure. Focusing on shared sanitation facilities for slum residents in two major Indian cities, we randomly allocate facilities to either a control or two treatments. The ?rst treatment incentivizes maintenance of the facility among providers, while the second treatment adds a sensitization campaign about the returns of a well-maintained facility among potential users. Using surveys, behavioral and objective measurements for both providers and potential users, we show that incentivizing maintenance does not favor collective action. The treatments raise the quality of facilities and reduce free riding, but at the cost of user selection. Providers improve routine maintenance, but also respond strategically to the newly-introduced incentives. While slum residents’ private willingness to pay and cooperation are unaffected, their demand for public intervention increases. The second treatment raises aware-ness, but does not affect behavior.

Suggested Citation

  • Alex Armand & Britta Augsburg & Antonella Bancalari, 2021. "Coordination and the poor maintenance trap: an experiment on public infrastructure in India," IFS Working Papers W21/16, Institute for Fiscal Studies.
    • Handle: RePEc:ifs:ifsewp:21/16
    as

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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • C39 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Other
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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