Chapter

Voluntary contributions to informal activities producing public goods: can these be induced by government and other formal sector agents? Some evidence from Indonesian posyandus

Jeffrey B. Nugent and Shailender Swaminathan

in Linking the Formal and Informal Economy

Published in print September 2006 | ISBN: 9780199204762
Published online September 2006 | e-ISBN: 9780191603860 | DOI: http://dx.doi.org/10.1093/0199204764.003.0012

Series: WIDER Studies in Development Economics

 Voluntary contributions to informal activities producing public goods: can these be induced by government and other formal sector agents? Some evidence from Indonesian posyandus

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Indonesia’s posyandus are an excellent example of important local quasi-public goods (health care) produced largely by volunteers, but with crucial inputs from government and other formal sector providers. This paper identifies the circumstances under which the formal sector’s inputs are especially successful in inducing voluntary activities that contribute to both the quantity and quality of the care provided. Data from three rounds of Indonesia’s Family Life Survey (IFLS) are used to estimate the causal effect of formal sector interventions on the quantity and quality of the healthcare provided by the informal sector. The model includes posyandu and community level fixed effects so that the effect of the intervention is identified using only longitudinal variation in the extent of interventions.

Keywords: informal sector; voluntary activities; health care; panel data; Indonesia

Chapter.  6249 words. 

Subjects: Economic Development and Growth

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