Public Service Delivery and Free Riding: Experimental Evidence from India

Alex Armand, Britta Augsburg and Antonella Bancalari

No 16284, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: This paper provides novel evidence on the trade-off between public service delivery and free riding in low- and middle-income countries. We implement a field experiment in the slums of two major Indian cities, where inadequate access to sanitation restricts residents to either free ride, by disposing human waste in common-property areas, or use a fee-funded public service provided by community toilets. Using original survey, behavioral and objective measurements, we show that top-down incentives for the quality of service provision improves delivery and reduces non-payment of fees, but excludes a share of residents from using the service, forcing them into free riding. Willingness to pay for the service is unaffected, but demand for public intervention in the quality of delivery increases, replacing the demand to address free riding. Adding a campaign sensitizing the consequences of free riding among residents raises awareness, but does not induce any behavioral change. Supplementing reduced form estimates with structural estimates, we show that eliminating free riding requires subsidizing use beyond free basic services.

Keywords: Public service; Basic services; Infrastructure; Maintenance; Free riding; Willingness to pay; Water and sanitation; Information; Health (search for similar items in EconPapers)
JEL-codes: C93 H40 I15 Q53 (search for similar items in EconPapers)
Date: 2022-04
References: Add references at CitEc
Citations:

Downloads: (external link)
https://cepr.org/publications/DP16284 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:16284

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP16284

Access Statistics for this paper

More papers in CEPR Discussion Papers from Centre for Economic Policy Research 33 Great Sutton Street, London EC1V 0DX, UK.
Bibliographic data for series maintained by CEPR ().