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Category Archives: I32

Do Evictions Cause Income Changes? An Instrumental Variables Approach

By Grace Mok

Evictions are an important aspect of the affordable housing crisis facing low-income American renters. However, there has been little research quantifying the causal impact of evictions, which poses challenges for academics interested in understanding inequality and policy-makers interested in reducing it. Merging two datasets both new to the literature, I address this gap in the causal literature by using an instrumental variables strategy to examine the impact of evictions on household income over time in Durham, North Carolina. Exploiting gentrification-related evictions as an instrument, I find a 2.5% decrease in household income after eviction. This is a small, but significant decrease in income given that median household income for households at time of eviction is about $15,000.

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Advisors: Professor Christopher Timmins, Professor Michelle Connolly | JEL Codes: I32, R29

Foreign Aid Allocation and Impact: A Sub-National Analysis of Malawi

By Rajlakshmi De

Understanding the role of foreign aid in poverty alleviation is one of the central inquiries for development economics. To augment past cross-country studies and randomized evaluations, this project data from Malawi is used in combination with multiple rounds of living standards data to predict the allocation and impact of health aid, water aid, and education aid.  Both instrumentation and propensity score matching methods are used.

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Advisor: Kent Kimbrough, Lori Leachman | JEL Codes: F35, I15, I25, I32, O12 | Tagged: Development, Education, Foreign Aid, Health, Malawi, Water

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