Happiness on Tap: Piped Water Adoption in Urban Morocco

Devoto, Florencia;Duflo, Esther;Dupas, Pascaline;Parienté, William;Pons, Vincent
(2012) American Economic Journal: Economic Policy — Vol. 4, n° 4, p. 68-99 (2012)

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Authors
  • Devoto, FlorenciaParis School of Economics
    Author
  • Duflo, EstherMIT
    Author
  • Dupas, PascalineUCLA
    Author
  • Author
  • Pons, VincentMIT
    Author
Abstract
Connecting private dwellings to the water main is expensive and typically cannot be publicly financed. We show that households' willingness to pay for a private connection is high when it can be purchased on credit, not because a connection improves health but because it increases the time available for leisure and reduces inter- and intra-household conflicts on water matters, leading to sustained improvements in well-being. Our results suggest that facilitating access to credit for households to finance lump sum quality-oflife investments can significantly increase welfare, even if those investments do not result in any health or income gains.
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Devoto, F., Duflo, E., Dupas, P., Parienté, W., & Pons, V. (2012). Happiness on Tap: Piped Water Adoption in Urban Morocco. American Economic Journal: Economic Policy, 4(4), 68-99. https://doi.org/10.1257/pol.4.4.68 (Original work published 2012)