Network adoption subsidies: A digital evaluation of a rural mobile phone program in Rwanda

Daniel Björkegren and Burak Ceyhun Karaca

Journal of Development Economics, 2022, vol. 154, issue C

Abstract: Governments commonly target subsidies for communication networks in remote areas. We analyze a program in Rwanda that subsidized the equivalent of 8% of the stock of mobile phones, using 5.3 billion transaction records. Handsets mostly stayed in rural areas: 85% of accounts receiving subsidized handsets mostly use a rural tower. Subsidized handsets were used as much as purchased handsets. Recipients are highly connected to each other. We simulate welfare effects using a network demand system. Up to 69% of the impact on operator revenue comes from spillovers on nonrecipients. We also assess counterfactual targeting based on network properties and vouchers.

Keywords: Targeting; Subsidies; Policy audits; Mobile phones; Networks; Technology adoption (search for similar items in EconPapers)
JEL-codes: L96 O14 O33 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:deveco:v:154:y:2022:i:c:s0304387821001255

DOI: 10.1016/j.jdeveco.2021.102762

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