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Picking the Poor: Indicators for Geographic Targeting in Peru

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Author Info
Schady, Norbert R

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Abstract

Geographic targeting is perhaps the most popular mechanism used to direct social programs to the poor in Latin America. This paper empirically compares geographic targeting indicators available in Peru. To this effect, I combine household-level information from the 1997 Peru Living Standards Measurement Survey (LSMS) and district-level information from the 1993 Peru Population and Housing Census. I then conduct a series of simulations which estimate leakage rates, concentration curves, the impact of transfers on poverty as measured by the headcount index, poverty gap and P[subscript 2] measures of the FGT family, and non-parametric (kernel) densities when transfers are based on alternative indicators. I conclude that there is substantial potential for geographic targeting in Peru. However, the differences in outcomes across geographic targeting indicators are small, and are not statistically significant. These results are in keeping with earlier work which suggests that (among reasonable alternatives) the choice of geographic targeting indicator does not have an important bearing on poverty outcomes, and are at odds with more recent research which stresses the advantage of poverty maps which "impute" consumption or income. Copyright 2002 by The International Association for Research in Income and Wealth.

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Article provided by Blackwell Publishing in its journal Review of Income & Wealth.

Volume (Year): 48 (2002)
Issue (Month): 3 (September)
Pages: 417-33
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Handle: RePEc:bla:revinw:v:48:y:2002:i:3:p:417-33

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  1. Besley, Timothy & Kanbur, Ravi, 1990. "The principles of targeting," Policy Research Working Paper Series 385, The World Bank. [Downloadable!]
  2. Ravallion, M., 1992. "Poverty Comparisons - A Guide to Concepts and Methods," Papers 88, World Bank - Living Standards Measurement.
  3. Chaudhuri, Shubham & Ravallion, Martin, 1994. "How well do static indicators identify the chronically poor?," Journal of Public Economics, Elsevier, vol. 53(3), pages 367-394, March. [Downloadable!] (restricted)
  4. Hentschel, Jesko & Lanjouw, Jean Olson & Lanjouw, Peter & Poggi, Javier, 1998. "Combining census and survey data to study spatial dimensions of poverty," Policy Research Working Paper Series 1928, The World Bank. [Downloadable!]
  5. Paxson, Christina H, 1992. "Using Weather Variability to Estimate the Response of Savings to Transitory Income in Thailand," American Economic Review, American Economic Association, vol. 82(1), pages 15-33, March. [Downloadable!] (restricted)
  6. Hoff, Karla, 2008. "Joseph E. Stiglitz," Policy Research Working Paper Series 4478, The World Bank. [Downloadable!]
  7. Kanbur, Ravi & Keen, Michael & Tuomala, Matti, 1994. "Labor Supply and Targeting in Poverty Alleviation Programs," World Bank Economic Review, Oxford University Press, vol. 8(2), pages 191-211, May.
  8. Datt, Gaurav & Ravallion, Martin, 1990. "Regional disparities, targeting, and poverty in India," Policy Research Working Paper Series 375, The World Bank. [Downloadable!]
  9. Jalan, Jyotsna & Ravallion, Martin, 1998. "Transient Poverty in Postreform Rural China," Journal of Comparative Economics, Elsevier, vol. 26(2), pages 338-357, June. [Downloadable!] (restricted)
  10. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May. [Downloadable!] (restricted)
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  1. repec:dia:wpaper:dt200707 is not listed on IDEAS
  2. Christophe Muller, 2006. "Optimising Anti-Poverty Transfers With Quantile Regressions," Working Papers. Serie AD 2006-07, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
    Other versions:
  3. Paxson, Christina & Schady, Norbert, 1999. "Do school facilities matter? : the case of the Peruvian Social Fund (FONCODES)," Policy Research Working Paper Series 2229, The World Bank. [Downloadable!]
  4. Christophe Muller, 2008. "Anti-Poverty Transfers without Riots in Tunisia," Working Papers. Serie AD 2008-08, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
    Other versions:
  5. Lars Osberg & Kuan Xu, 2007. "How Should We Measure Poverty in a Changing World? Methodological Issues and Chinese Case Study," Department of Economics at Dalhousie University working papers archive rderevision9, Dalhousie, Department of Economics. [Downloadable!]
    Other versions:
  6. Philippe De Vreyer & Javier Herrera & Sandrine Mesplé-Somps, 2005. "Consumption growth and spatial poverty traps: an analysis of the effect of social services and community infrastructures on living standards in rural Peru," Ibero America Institute for Econ. Research (IAI) Discussion Papers 124, Ibero-America Institute for Economic Research. [Downloadable!]
  7. Schady, Norbert R., 2002. "The (positive) effect of macroeconomic crises on the schoolingand employment decisions of children in a middle-income country," Policy Research Working Paper Series 2762, The World Bank. [Downloadable!]
  8. Christophe MULLER and Sami BIBI, 2008. "Focused Transfer Targeting against Poverty Evidence from Tunisia," THEMA Working Papers 2008-37, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise. [Downloadable!]
  9. Christophe Muller & Sami Bibi, 2006. "Focused Targeting against Poverty Evidence from Tunisia," IDEP Working Papers 0602, Institut d'economie publique (IDEP), Marseille, France, revised Apr 2006. [Downloadable!]
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  10. Skoufias, Emmanuel & Coady, David P., 2002. "Are the welfare losses from imperfect targeting important?," FCND discussion papers 125, International Food Policy Research Institute (IFPRI). [Downloadable!]
  11. Sami Bibi & Jean-Yves Duclos, 2003. "Equity and Policy Effectiveness with Imperfect Targeting," Cahiers de recherche 0335, CIRPEE. [Downloadable!]
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  12. Chikako Yamauchi, 2008. "Community-based Targeting and Initial Local Conditions: Evidence from Indonesia’s IDT Program," CEPR Discussion Papers 584, Centre for Economic Policy Research, Research School of Social Sciences, Australian National University. [Downloadable!]
  13. David Stifel & Harold Alderman, 2005. "Targeting at the Margin: the 'Glass of Milk’ Subsidy Programme in Peru," The Journal of Development Studies, Taylor and Francis Journals, vol. 41(5), pages 839-864, July. [Downloadable!] (restricted)
  14. Stifel, David & Alderman, Harold, 2003. "The"Glass of Milk"subsidy program and malnutrition in Peru," Policy Research Working Paper Series 3089, The World Bank. [Downloadable!]
    Other versions:
  15. Kristjanson, Patricia & Krishna, Anirudh & Radeny, Maren & Kuan, Judith, 2006. "Pathways Into and Out of Poverty and the Role of Livestock in the Peruvian Andes," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25451, International Association of Agricultural Economists. [Downloadable!]
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