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On the Targeting and Redistributive Efficiencies of Alternative Transfer Instruments

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  • David Coady
  • Emmanuel Skoufias

Abstract

The distributional characteristic provides an attractive alternative to conventional approaches used to evaluate the targeting performance of transfer programs. We decompose it into two components that are useful both conceptually and empirically; one capturing the targeting efficiency of the instrument, the other its redistributive efficiency . The redistributive index can also be generalized for the purposes of evaluating the degree of progressivity in tax-benefit structures. For illustrative purposes, we present an empirical application of the distributional characteristic and its decomposition using Mexican data. The welfare gains from using categorical targeting and means testing reflect improvements in redistributive and targeting efficiency respectively. Copyright 2004 Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by International Association for Research in Income and Wealth in its journal Review of Income and Wealth.

Volume (Year): 50 (2004)
Issue (Month): 1 (03)
Pages: 11-27

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Handle: RePEc:bla:revinw:v:50:y:2004:i:1:p:11-27

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References

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  1. Hoddinott, John & Haddad, Lawrence James & Besley, Tim & Adato, Michelle, 2001. "Participation and poverty reduction," FCND discussion papers 98, International Food Policy Research Institute (IFPRI).
  2. Menon, Purnima & Ruel, Marie T. & Morris, Saul Sutkover, 2000. "Socio-economic differentials in child stunting are consistently larger in urban than rural areas," FCND discussion papers 97, International Food Policy Research Institute (IFPRI).
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Cited by:
  1. Nanak Kakwani & Marcelo Neri & Hyun H. Son, 2006. "Linkages between Pro-Poor Growth, Social Programmes and Labour Market: The Recent Brazilian Experience," Working Papers 26, International Policy Centre for Inclusive Growth.
  2. Diaz-Bonilla, Eugenio & Robinson, Sherman & Thomas, Marcelle, 2002. "On boxes, contents, and users," TMD discussion papers 82, International Food Policy Research Institute (IFPRI).
  3. Coady, David P. & Parker, Susan W., 2005. "Program participation under means-testing and self-selection targeting methods," FCND briefs 191, International Food Policy Research Institute (IFPRI).
  4. Duclos, Jean-Yves & Makdissi, Paul & Wodon, Quentin, 2005. "Poverty-dominant program reforms: the role of targeting and allocation rules," Journal of Development Economics, Elsevier, vol. 77(1), pages 53-73, June.
  5. David Coady, 2006. "The Welfare Returns to Finer Targeting: The Case of The Progresa Program in Mexico," International Tax and Public Finance, Springer, vol. 13(2), pages 217-239, May.
  6. Garcia-Diaz, Rocio & Sosa-Rub, Sandra G., 2011. "Analysis of the distributional impact of out-of-pocket health payments: Evidence from a public health insurance program for the poor in Mexico," Journal of Health Economics, Elsevier, vol. 30(4), pages 707-718, July.
  7. Kakwani, Nanak & Neri, Marcelo Côrtes & Son, Hyun H., 2010. "Linkages Between Pro-Poor Growth, Social Programs and Labor Market: The Recent Brazilian Experience," World Development, Elsevier, vol. 38(6), pages 881-894, June.
  8. Neri, Marcelo Cortes, 2008. "Income Polices, Income Distribution, and the Distribution of Opportunities in Brazil," Economics Working Papers (Ensaios Economicos da EPGE) 678, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
  9. 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 Economics, Australian National University.
  10. José Cuesta, 2006. "The distributive consequences of machismo : a simulation analysis of intra-household discrimination," Journal of International Development, John Wiley & Sons, Ltd., vol. 18(8), pages 1065-1080.
  11. Paul A. Dorosh & David Coady & Bart Minten, 2008. "Evaluating Alternative Approaches to Poverty Alleviation," IMF Working Papers 08/9, International Monetary Fund.
  12. Skoufias, Emmanuel & Lindert, Kathy & Shapiro, Joseph, 2009. "Globalization and the Role of Public Transfers in Redistributing Income in Latin America and the Caribbean," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  13. Elena Del Rey & Fernanda Estevan, 2011. "Conditional Cash Transfers and Education Quality in the Presence of Credit Constraints," Working Papers 1108E, University of Ottawa, Department of Economics.
  14. Skoufias, Emmanuel & Davis, Benjamin & de la Vega, Sergio, 2001. "Targeting the Poor in Mexico: An Evaluation of the Selection of Households into PROGRESA," World Development, Elsevier, vol. 29(10), pages 1769-1784, October.
  15. Cuesta, Jose, 2006. "The distributive consequuences of machismo: A simulation analysis of intrahousehold allocation," MPRA Paper 11243, University Library of Munich, Germany.

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