Optimal income support targeting
AbstractThis paper considers the practical problem of distributing a fixed budget for poverty alleviation to a population whose poverty status is not directly observable. The solution we propose improves on the techniques that are commonly used in practice by taking both the concavity of the social welfare function and the entire conditional distribution of poverty status into account, and by endogenously determining the optimal transfer levels. We provide an algorithm to calculate the optimal transfers for any population of benefit applicants. Finally, we explain how our method is a generalization of statistical classification techniques and thus provide an intuitive discussion of the defects of currently operational methods. Copyright Springer Science + Business Media, LLC 2006
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Bibliographic InfoArticle provided by Springer in its journal International Tax and Public Finance.
Volume (Year): 13 (2006)
Issue (Month): 6 (November)
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Web page: http://www.springerlink.com/link.asp?id=102915
Classification; Poverty; Program design; Targeting;
Other versions of this item:
- De Watchter, S. & Galiani, S., 2000. "Optimal Income Support Targeting," Economics Series Working Papers 9941, University of Oxford, Department of Economics.
- Stefan De Wachter & Sebastian Galiani, 2000. "Optimal Income Support Targeting," Economics Series Working Papers 41, University of Oxford, Department of Economics.
- Sebastian Galiani & Stefan De Wachter, 2001. "Optimal Income Support Targeting," Working Papers 39, Universidad de San Andres, Departamento de Economia, revised Apr 2005.
- H2 - Public Economics - - Taxation, Subsidies, and Revenue
- C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics
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.:
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- Galiani, Sebastian & McEwan, Patrick J., 2013. "The heterogeneous impact of conditional cash transfers," Journal of Public Economics, Elsevier, vol. 103(C), pages 85-96.
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