Abstract
External financing of local public goods can potentially create ‘political resource curses' by reducing citizen oversight, exacerbating elite capture, and producing policy outcomes that are sub-optimal for the general population. This paper experimentally tests a novel mechanism that seeks to mitigate elite capture of local development projects. Control communities are provided with block grants to fund local public goods, while households in treatment communities are provided with vouchers that they may either contribute to a public good or redeem at a discount for a private capital good. We find that the use of vouchers as a mechanism for aid delivery increases community participation in local public decision-making, changes the nature of allocation outcomes, and improves community satisfaction with allocation outcomes.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
