Does it Pay to Participate?

Ari Perdana, Kostas Matakos and Elizabeth Radin
Additional contact information
Ari Perdana: CSIS Jakarta

Development Economics Working Papers from East Asian Bureau of Economic Research

Abstract: This paper analyzes whether participation in formal and informal community activities helped household in Indonesia mitigating the impact of the 1998 economic crisis. The paper uses the 1997 and 2000 round of Indonesian Family Life Survey (IFLS) to capture the impact of economic crisis on household welfare. The empirical results do not seem to support those hypotheses. Using number of children in each household as instrumental variable to solve the reverse causality and omitted variable bias problems, coefficient for community participation is not statistically significant in explaining changes in household expenditure. The large magnitude and universal nature of the shock might explain why social capital did not help households. However, using probit estimation with the same instrument, we find that participation in community activities increased the probability of households getting government assistance.

Keywords: Social capital; household welfare; economic crisis; participatory (search for similar items in EconPapers)
Date: 2006-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.eaber.org/node/21815 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 301 [REDIRECT LOOP] Moved Permanently (http://www.eaber.org/node/21815 [301 Moved Permanently]--> https://www.eaber.org/node/21815 [301 Moved Permanently]--> https://www.eaber.org/node/21815 [301 Moved Permanently]--> https://www.eaber.org/node/21815 [301 Moved Permanently]--> https://www.eaber.org/node/21815 [301 Moved Permanently]--> https://www.eaber.org/node/21815 [301 Moved Permanently]--> https://www.eaber.org/node/21815 [301 Moved Permanently]--> https://www.eaber.org/node/21815)

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:eab:develo:21815

Access Statistics for this paper

More papers in Development Economics Working Papers from East Asian Bureau of Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Shiro Armstrong ().