Efficiency, Equity and Poverty Alleviation: Policy Issues in Less Developed Countries
AbstractIn this paper we start by noting that policies that help growth by improving allocational efficiency may also help the poor. We then go on to consider cases where in view of serious agency costs and coordination problems (particularly involving processes in credit and insurance markets) there may be a great deal of scope for trying redistributive projects which at the same time enhance productive efficiency, contrary to the message of efficiency-equity trade-off central to mainstream policy economics. In this context we discuss the efficiency effects of asset distribution programs like land reform. We then examine the merits and costs of targeting transfers aimed at improving their cost-effectiveness, including issues of self-selection by the poor and of targeting disadvantaged groups and backward areas. Finally, we discuss governance structures and focus on the role of self-governing institutions at the local level in improving efficiency and equity in poverty alleviation.
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Bibliographic InfoArticle provided by Royal Economic Society in its journal The Economic Journal.
Volume (Year): 106 (1996)
Issue (Month): 438 (September)
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Other versions of this item:
- Pranab Bardhan., 1996. "Efficiency, Equity and Poverty Alleviation: Policy Issues in Less Developed Countries," Center for International and Development Economics Research (CIDER) Working Papers C96-065, University of California at Berkeley.
- Bardhan, Pranab, 1996. "Efficiency, Equity and Poverty Alleviation: Policy Issues in Less Developed Countries," Center for International and Development Economics Research, Working Paper Series qt3jq4h9sc, Center for International and Development Economics Research, Institute for Business and Economic Research, UC Berkeley.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Oded Galor & Joseph Zeira, 2013.
"Income Distribution and Macroeconomics,"
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- Muller, Christophe, 2002. "Prices and living standards: evidence for Rwanda," Journal of Development Economics, Elsevier, vol. 68(1), pages 187-203, June.
- Christophe Muller, 2006. "Poverty Simulation And Price Changes," Working Papers. Serie AD 2006-13, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Gruber, Lloyd & Kosack, Stephen, 2014. "The Tertiary Tilt: Education and Inequality in the Developing World," World Development, Elsevier, vol. 54(C), pages 253-272.
- Christopher Cramer, 2000. "Inequality, Development and Economic Correctness," Working Papers 105, Department of Economics, SOAS, University of London, UK.
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