Public Service Delivery, Exclusion and Externalities: Theory and Experimental Evidence from India by Alex Armand

Join us for the latest Applied Economics Research Seminar Series event, Autumn Term 2023.

Alex Armand, from the Nova School of Business and Economics, will present this seminar on Public Service Delivery, Exclusion and Externalities: Theory and Experimental Evidence from India.

Abstract

This study explores the complex link between public service quality and its impact on usage. Our theoretical framework reveals that for services funded with user fees where exclusion leads to externalities this relationship is nuanced. It hinges primarily on whether the increase in usage due to improved service (quality effect) outweighs the decrease caused by fees (price-elasticity effect). We test this hypothesis in a randomized controlled trial in the two largest cities of Uttar Pradesh, India, focusing on access to water and sanitation services. Our findings show that higher service quality increases fee compliance but excluding some residents from the service, and leading to negative health externalities. This result highlights that a price-elasticity effect can prevail over a quality effect.

The seminar will begin with a presentation and will end with a Q and A session.

It will be held in the Economics Common Room at 2pm on Tuesday 24th October. This event is open to all levels of study and is also open to the public. To register your place and gain access to the webinar, please contact the seminar organisers.

This event is part of the Applied Economics Research Seminar Series.