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March 13, 20260 citationsOpen Access

A Comparative Difference-in-Differences Analysis of Municipal Infrastructure Asset Management Efficiency in Ghana, 2000–2026

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KAKwame AsanteKAKofi Agyeman-BaduAMAma Serwaa Mensah

Key Points

  • Evaluate the efficiency gains of asset management systems in selected municipalities using a DiD model.
  • Comparative panel study design analyzing longitudinal data from treatment and control municipalities.
  • Application of a two-way fixed effects difference-in-differences model for causal impact assessment.
  • Inference based on cluster-robust standard errors at the municipal level.
  • Positive and statistically significant average treatment effect on efficiency metrics for treated municipalities.
  • Estimated 15.2 percentage points reduction in asset lifecycle costs (95% CI: 11.4, 19.0).
  • Parallel trends assumption held true for the pre-intervention period.

Abstract

"background": "Municipal infrastructure asset management systems in many developing nations face persistent challenges in efficiency and performance measurement. The evaluation of interventions aimed at improving these systems requires robust, quasi-experimental methods to isolate causal effects from confounding factors. ", "purpose and objectives": "This study aims to methodologically evaluate the efficiency gains of implemented asset management systems across selected municipalities. The primary objective is to apply and critically assess a difference-in-differences (DiD) model for quantifying the causal impact of these systems on key engineering performance indicators. ", "methodology": "A comparative panel study design was employed, analysing longitudinal data from treatment and control groups of municipalities. The core statistical model is a two-way fixed effects DiD specification: Y{it = \ + \ (Treatmenti \ Postt) + \ + \ +, where Y₈ₓ is the efficiency metric. Inference is based on cluster-robust standard errors at the municipal level. ", "findings": "Preliminary model specification tests indicate a positive and statistically significant average treatment effect on the treated (ATT) for core efficiency metrics. The ATT estimate for asset lifecycle cost reduction was 15. 2 percentage points (95% CI: 11. 4, 19. 0). Diagnostic testing revealed the parallel trends assumption held for the pre-intervention period. ", "conclusion": "The DiD framework provides a rigorous methodological approach for evaluating infrastructure management interventions, offering a counterfactual-based measure of efficiency gains. The model successfully isolates the effect of systematic asset management from secular trends. ", "recommendations": "Municipal engineers and policymakers should adopt quasi-experimental evaluation designs for infrastructure programmes. Future research should incorporate granular asset condition data and explore heterogeneous effects across different asset classes and regional contexts. ", "key words": "infrastructure asset management, difference-in-differences, causal inference, municipal engineering, performance evaluation, panel data", "contribution statement": "This paper provides a novel application of

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Cite This Study

Asante et al. (2026) studied this question.

synapsesocial.com/papers/69b3abf602a1e69014ccd4c2https://doi.org/10.5281/zenodo.18966446
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