1 AIT Asian Institute of Technology

Affordability dynamics and slum upgrading : a model based on evidence from Dhaka, Bangladesh

AuthorMiah, Md. Abdul Quader
Call NumberAIT Diss. no. HS-89-01
Subject(s)Slums--Pakistan--Dhaka

NoteA dissertation submitted in partial fulfilment of the requirements for the award of the Degree of Doctor of Engineering, School of Engineering and Technology
PublisherAsian Institute of Technology
Series StatementDissertation ; no. HS-89-01
AbstractIn the wake of rapid urbanization, the proliferation of a large number of slums in the cities of developing countries is a singularly drastic manifestation of urban poverty, resulting in deteriorating conditions of housing and public services. Earlier attempts by governments of countries in the developing world failed to solve the problem. Even the recent concept of slum upgrading could not bring about the desired results, for it proved not being replicable due mainly to scarcity of resources on the part of the initiators. This has necessitated cost recovery, an unconventional concept and one of the latest ingredients of slum upgrading. The crucial aspect of cost recovery is dwellers' affordability. This calls for an in depth study of the implicit determinants of affordability and their intrinsic relationships. There is a severe lack of evidence and clarity in this regard. A cross-section of three-year time series data (9186-1988) required for this research was collected from Dhaka, Bangladesh with a master sample size of 750 dwellers' households spread over six slums. The research design involves the innovative technique of combined two-stage and two-step sampling, where slums are selected and then a proportionately area based as well as proportionately stratified sample is drawn from among owners and renters. An exponential and multiplicative econometric dynamic model has been developed using the two- step CLS technique. It shows the intrinsic and significant relationship between affordability and fourteen exogenous variables, namely, preceding year's affordability, remittance to home village, education of household head, household size, saving, non-housing expenditure, tenure, area of house, number of rooms, utilities, capital cost, quality of house structure, infrastructure and neighborhood, current household income, and preceding year's household income. The model parameters pass all the tests based on theoretical, statistical and econometric criteria. The model possesses satisfactory predicting power and all desirable properties. Affordability has positive or negative short-run and long-run elasticities with respect to the individual exogenous variables which display diminishing marginal propensity to afford. Their combined influence brings together increased returns to scale to affordability with increased marginal propensity to afford. The model can serve all the three purposes of structural analysis, forecasting, and policy making. Affordability is found to be most sensitive to changes of tenure, followed by structural, infrastructure as well as neighborhood qualities and income. It is much less sensitive to changes of education of household head, remittance and saving.
Year1989
Corresponding Series Added EntryAsian Institute of Technology. Dissertation ; no. HS-89-01
TypeDissertation
SchoolSchool of Environment, Resources, and Development
DepartmentDepartment of Energy and Climate Change (Former title: Department of Energy, Environment, and Climate Change (DEECC))
Academic Program/FoSHuman Settlement (HS)
Chairperson(s)Weber, Karl E.;
Examination Committee(s)Orth, Hermann M.;Amin, A.T.M. Nurul;Setty, E. Desingu;Tran, Francis T.;Koenigsberger, Otto H.;
Scholarship Donor(s)Government of Japan;
DegreeThesis (Ph.D.) - Asian Institute of Technology, 1989


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