The Effect Of Public Expenditure On The Housing Deficit In Peru At The Municipal Level

What impact does public expenditure on housing have on the deficit in a municipality? This article answers this question for Peru for the period 2001-2013. Municipalities with high expenditure levels saw a reduction in the number of households lacking access to water, sanitation, and electricity. There was no significant change in cohabitation, overcrowding, or lack of documents of ownership. The analysis was based on the empirical association between mineral exploitation and housing deficit at the municipal level. Municipalities that benefited from the mineral boom after 2007 saw housing expenditures increase dramatically, which reduced the housing deficit associated with poor materials to 18% from 33% (the national average). In addition, the housing deficit related to lack of water, sanitation, and electricity decreased from 26% to 22%.