HOUSING PROGRAM AND SLUMS: an identification strategy using a regression discontinuity design for the Brazilian case

The present work seeks to analyze the effects of the Residential Leasing Program (PAR) on Brazilian slums. In order to achieve our objective, the empirical strategy used is concerned with reducing endogeneity problems and for that, we apply a Regression Discontinuity Design that minimizes endogeneity problems and thus reduces bias in our estimators. With due attention to the methodology, the results showed that the PAR can reduce the rates of sub-habitations or slums in the municipalities participating in the program. In addition, it improves the housing and financial structure of the municipality with advances in sanitation, electricity and the collection of property and land taxes.