PNPM Rural Income Inequality and Growth Impact Simulation

Working Paper 18

October 2014

Author: Jon R. Jellema

The author generates a household-and economy-level impact simulation, using observed parametersfrom actual public works programme implementation, to answer the following question: when thereis a choice among feasible infrastructure-provision technologies, which technology produces greatergains in desirable social objectives? The author forms expectations about the relative advantages ofone technology over another only for those public works programmes that are proven and feasible inIndonesia and for which there is empirically observed implementation information. Output measuresresulting from implementation of each of the feasible infrastructure-delivery technologies are calculatedand how these technologies perform with respect to inequality reduction and long-term growth inregional GDP is estimated.

The TNP2K Working Paper Series disseminates the findings of work in progress to encourage discussion and exchange of ideas on poverty, social protection, and development issues.

Support for this publication has been provided by the Australian Government through the Poverty Reduction Support Facility (PRSF).

The findings, interpretations, and conclusions herein are those of the author and do not necessarily reflect the views of the Government of Indonesia or the Government of Australia.

You are free to copy, distribute, and transmit this work for noncommercial purposes.

Attribution: Jellema, Jon. 2014. ‘PNPM Rural Income Inequality and Growth Impact Simulation’, TNP2K

Working Paper 18-2014. Tim Nasional Percepatan Penanggulangan Kemiskinan (TNP2K), Jakarta,

Indonesia.

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