Tuesday, September 17, 2013

The Causes of Informal Housing - EPAINOS 2013 Prize Winner

Every year, the European Regional Science Association (ERSA) gives the EPAINOS award to a young scientist, under 33 years old. It makes me very glad to know that this years’ winner is Daniel da Mata!  Daniel has just finished his PhD in economics at Cambridge University and he is a brilliant researcher we have here at Ipea (Institute for Applied Economic Research).

Here is his awarded paper: "Disentangling the Causes of Informal Housing"

"This article aims to measure the main determinants of the expansion of informal settlements. The focus is on how urban poverty, rural-urban migration and land use regulations impact the growth of slums. I construct a structural model to explain the determinants of informal housing. The model supports the main empirical evidence regarding slums formation and it is able to quantitatively assess the role of each determinant of slums growth. The model is calibrated and estimated to be consistent with several statistics related to the Brazilian urbanization process from 1980 to 2010. I present several counterfactual experiments to assess the role of income, migration and land use regulation. The results show that these factors explain about half of the variation in slums growth between 1980 and 2010. I also perform ex-ante evaluation of the impacts of slum upgrading interventions and show how policies may have unintended adverse effects on slums formation."

By the way: Guilherme Resende was awarded the EPAINOS prize in 2009. Guilherme is another great researcher at Ipea.

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