Dams

05/26/07

Dams

Abstract: This paper studies the productivity and distributional effects of large irrigation dams in India. Our instrumental variable estimates exploit the fact that river gradient affects a district's suitability for dams. In districts located downstream from a dam, agricultural production increases, and vulnerability to rainfall shocks declines. In contrast, agricultural production shows an insignificant increase in the district where the dam is located but its volatility increases. Rural poverty declines in downstream districts but increases in the district where the dam is built, suggesting that neither markets nor state institutions have alleviated the adverse distributional impacts of dam construction.

by Esther Duflo 1 and Rohini Pande 2;
1. Massachusetts Institute of Technology, National Bureau of Economic Research, and Center for Economic Policy Research
2. Harvard University and Center for Economic Policy Research

Quarterly Journal of Economics via MIT Press www.mitpressjournals.org
Volume 122, Number 2; May, 2007; Pages 601-646
http://www.mitpressjournals.org/doi/abs/10.1162/qjec.122.2.601

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