IDEAS home Printed from https://ideas.repec.org/a/bla/revinw/v48y2002i3p417-433.html
   My bibliography  Save this article

Picking the Poor: Indicators for Geographic Targeting in Peru

Author

Listed:
  • Norbert R. Schady

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 P2 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.

Suggested Citation

  • Norbert R. Schady, 2002. "Picking the Poor: Indicators for Geographic Targeting in Peru," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 48(3), pages 417-433, September.
    • Handle: RePEc:bla:revinw:v:48:y:2002:i:3:p:417-433
    DOI: 10.1111/1475-4991.00061
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1475-4991.00061
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1475-4991.00061?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. 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.
    2. Hoff, Karla, 2008. "Joseph E. Stiglitz," Policy Research Working Paper Series 4478, The World Bank.
    3. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    4. Hentschel, Jesko, et al, 2000. "Combining Census and Survey Data to Trace the Spatial Dimensions of Poverty: A Case Study of Ecuador," The World Bank Economic Review, World Bank, vol. 14(1), pages 147-165, January.
    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.
    6. Ravallion, Martin & Sen, Binayak & DEC, 1994. "How land-based targeting affects rural poverty," Policy Research Working Paper Series 1270, The World Bank.
    7. Ravallion, M., 1992. "Poverty Comparisons - A Guide to Concepts and Methods," Papers 88, World Bank - Living Standards Measurement.
    8. Kanbur, Ravi & Keen, Michael & Tuomala, Matti, 1994. "Labor Supply and Targeting in Poverty Alleviation Programs," The World Bank Economic Review, World Bank, vol. 8(2), pages 191-211, May.
    9. Besley, Timothy & Kanbur, Ravi, 1990. "The principles of targeting," Policy Research Working Paper Series 385, The World Bank.
    10. 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.
    11. Jalan, Jyotsna & Ravallion, Martin, 1998. "Transient Poverty in Postreform Rural China," Journal of Comparative Economics, Elsevier, vol. 26(2), pages 338-357, June.
    12. Datt, Gaurav*Ravallion, Martin, 1990. "Regional disparities, targeting, and poverty in India," Policy Research Working Paper Series 375, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stefan Wachter & Sebastian Galiani, 2006. "Optimal income support targeting," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 13(6), pages 661-684, November.
    2. Julia Johannsen, 2006. "Operational Poverty Targeting In Peru – Proxy Means Testing With Non-Income Indicators," Working Papers 30, International Policy Centre for Inclusive Growth.
    3. Ravallion, Martin, 2000. "Monitoring Targeting Performance When Decentralized Allocations to the Poor Are Unobserved," The World Bank Economic Review, World Bank, vol. 14(2), pages 331-345, May.
    4. Benjamin Davis, 2002. "Is it Possible to Avoid a Lemon? Reflections on Choosing a Poverty Mapping Method," Working Papers in Food Policy and Nutrition 08, Friedman School of Nutrition Science and Policy.
    5. World Bank, 2002. "Poverty in Bangladesh : Building on Progress," World Bank Publications - Reports 15303, The World Bank Group.
    6. Coudouel, Aline & Hentschel, Jesko & Wodon, Quentin, 2002. "Измерение И Анализ Бедности [Poverty Measurement and Analysis]," MPRA Paper 10492, University Library of Munich, Germany.
    7. Jayne, Thomas S. & Strauss, John & Yamano, Takashi & Molla, Daniel, 2002. "Targeting of food aid in rural Ethiopia: chronic need or inertia?," Journal of Development Economics, Elsevier, vol. 68(2), pages 247-288, August.
    8. Christophe Muller, 2008. "The Measurement Of Poverty With Geographical And Intertemporal Price Dispersion: Evidence From Rwanda," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 54(1), pages 27-49, March.
    9. Kanbur, Ravi, 2000. "Income distribution and development," Handbook of Income Distribution, in: A.B. Atkinson & F. Bourguignon (ed.), Handbook of Income Distribution, edition 1, volume 1, chapter 13, pages 791-841, Elsevier.
    10. Ward, Patrick S., 2016. "Transient Poverty, Poverty Dynamics, and Vulnerability to Poverty: An Empirical Analysis Using a Balanced Panel from Rural China," World Development, Elsevier, vol. 78(C), pages 541-553.
    11. Sudharshan Canagarajah & Mr. Saji Thomas, 2002. "Poverty in a Wealthy Economy: The Case of Nigeria," IMF Working Papers 2002/114, International Monetary Fund.
    12. Ersado, Lire, 2003. "Income diversification in Zimbabwe," FCND discussion papers 152, International Food Policy Research Institute (IFPRI).
    13. Datt, Gaurav & Gunewardena, Dileni, 1997. "Some aspects of poverty in Sri Lanka : 1985-90," Policy Research Working Paper Series 1738, The World Bank.
    14. Ravallion, Martin, 2003. "Targeted transfers in poor countries : revisiting the tradeoffs and policy options," Policy Research Working Paper Series 3048, The World Bank.
    15. Coudouel, Aline & Hentschel, Jesko & Wodon, Quentin, 2002. "Medición y análisis de la pobreza [Poverty Measurement and Analysis]," MPRA Paper 10491, University Library of Munich, Germany.
    16. Miguel Székely, 1997. "Opciones de políticas para la paliación de la pobreza," Research Department Publications 4063, Inter-American Development Bank, Research Department.
    17. Miguel Székely, 1997. "Policy Options for Poverty Alleviation," Research Department Publications 4062, Inter-American Development Bank, Research Department.
    18. Jehu-Appiah, Caroline & Aryeetey, Genevieve & Spaan, Ernst & Agyepong, Irene & Baltussen, Rob, 2010. "Efficiency, equity and feasibility of strategies to identify the poor: An application to premium exemptions under National Health Insurance in Ghana," Health Policy, Elsevier, vol. 95(2-3), pages 166-173, May.
    19. Minot, Nicholas, 1998. "Generating disaggregated poverty maps," MTID discussion papers 25, International Food Policy Research Institute (IFPRI).
    20. Ersado, Lire, 2006. "Income diversification in Zimbabwe : welfare implications from urban and rural areas," Policy Research Working Paper Series 3964, The World Bank.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:revinw:v:48:y:2002:i:3:p:417-433. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/iariwea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.