NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Emilia Tjernström

Robert M. La Follette School of Public Affairs
University of Wisconsin–Madison
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Madison, WI 53706–1211

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NBER Working Papers and Publications

September 2016Heterogeneous Impact Dynamics of a Rural Business Development Program in Nicaragua
with Michael R. Carter, Patricia Toledo: w22628
We study the impacts of a rural development program designed to boost the income of the small-farm sector in Nicaragua. Exploiting the random assignment of treatment, we find statistically and economically significant impacts on farm incomes and investment in farm capital. Using continuous treatment estimation techniques, we examine the evolution of program impacts over time and find that incomes in the activities targeted by the program as well as farm capital rise significantly over time, even after the expiration of the program. Because of the temporal pattern of impacts, shorter-term binary treatment estimators do not fully capture the impacts of the program. Additionally, panel quantile methods reveal striking heterogeneity of program impacts on both income and investment. We show tha...
 
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