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Monitoring Targeting Performance When Decentralized Allocations to the Poor Are Unobserved

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  • Ravallion, Martin

Abstract

How can a central government monitor the performance of a decentralized poverty program when the incidence of the program's benefits is unobserved at the local level? This article shows that, using a poverty map and the corresponding spending allocation across geographic areas, one can identify the latent differences in mean program allocations to the poor and the non poor. The national measure of targeting performance can also be decomposed into subgroups. An application to an antipoverty program in Argentina is used to assess the program's performance before and after reforms. Increases in funding and changes in program design brought large gains to the poor, although performance differed across provinces. Copyright 2000 by Oxford University Press.

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Article provided by World Bank Group in its journal World Bank Economic Review.

Volume (Year): 14 (2000)
Issue (Month): 2 (May)
Pages: 331-45

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Handle: RePEc:oup:wbecrv:v:14:y:2000:i:2:p:331-45

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  1. David Bigman & Stefan Dercon & Dominique Guillaume & Michel Lambotte, 1999. "Community Targeting for Poverty Reduction in Burkina Faso," Center for Economic Studies - Discussion papers ces9910, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
  2. Wildasin, David E, 1991. "Income Redistribution in a Common Labor Market," American Economic Review, American Economic Association, vol. 81(4), pages 757-74, September.
  3. Charles Brown & Wallace E. Oates, 1985. "Assistance to the Poor in a Federal System," NBER Working Papers 1715, National Bureau of Economic Research, Inc.
  4. Keen, M. & Marchand, M., . "Fiscal competition and the pattern of public spending," CORE Discussion Papers RP -1284, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  5. Giovanni Andrea Cornia & Frances Stewart, 1993. "Two errors of targeting," Journal of International Development, John Wiley & Sons, Ltd., vol. 5(5), pages 459-496, 09.
  6. Datt, Gaurav & Ravallion, Martin, 1990. "Regional disparities, targeting, and poverty in India," Policy Research Working Paper Series 375, The World Bank.
  7. Jalan, Jyotsna & Ravallion, Martin, 1999. "Income gains to the poor from workfare - estimates for Argentina's TRABAJAR Program," Policy Research Working Paper Series 2149, The World Bank.
  8. Hoff, Karla, 2008. "Joseph E. Stiglitz," Policy Research Working Paper Series 4478, The World Bank.
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