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The Potential and Limitations of Self-Targeted Food Subsidies

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Author Info
Alderman, Harold
Lindert, Kathy

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Abstract

Can self-selection of subsidized commodities be used as a mechanism to transfer income to the poor? Evidence from two self-targeting programs, one in South Africa and one in Tunisia, shows that although self-targeting can clearly improve the distribution of food subsidies to the poorest members of society, its power to alleviate poverty and reduce income disparities is limited by preference patterns, income inequality, and the size of the individual subsidies. Self-targeting through quality and product differentiation can be a useful means to reform existing universal subsidy schemes, but it should be considered a transitional tool while the capacity for implementing more precise mechanisms is developed. Copyright 1998 by Oxford University Press.

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Article provided by Oxford University Press in its journal World Bank Research Observer.

Volume (Year): 13 (1998)
Issue (Month): 2 (August)
Pages: 213-29
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Handle: RePEc:oup:wbrobs:v:13:y:1998:i:2:p:213-29

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  1. Besley, Timothy J & Kanbur, S M Ravi, 1988. "Food Subsidies and Poverty Alleviation," Economic Journal, Royal Economic Society, vol. 98(392), pages 701-19, September. [Downloadable!] (restricted)
  2. Sah, Raaj Kumar, 1983. "How much redistribution is possible through commodity taxes?," Journal of Public Economics, Elsevier, vol. 20(1), pages 89-101, February. [Downloadable!] (restricted)
  3. Ravallion, Martin, 1991. "Reaching the Rural Poor through Public Employment: Arguments, Evidence, and Lessons from South Asia," World Bank Research Observer, Oxford University Press, vol. 6(2), pages 153-75, July.
  4. Tuck, L. & Lindert, K., 1996. "From Universal Food Subsidies to a Self-Targeted Program: A Case Study in Tunisian Reform," World Bank - Discussion Papers 351, World Bank.
  5. Alderman, Harold & del Ninno, Carlo, 1999. "Poverty Issues for Zero Rating VAT in South Africa," Journal of African Economies, Oxford University Press, vol. 8(2), pages 182-208, July.
  6. Anne Case & Angus Deaton, 1996. "Large Cash Transfers to the Elderly in South Africa," NBER Working Papers 5572, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  7. Alderman, Harold, 1987. "Allocation of goods through non-price mechanisms : Evidence on distribution by willingness to wait," Journal of Development Economics, Elsevier, vol. 25(1), pages 105-124, February. [Downloadable!] (restricted)
  8. Besley, Timothy & Coate, Stephen, 1991. "Public Provision of Private Goods and the Redistribution of Income," American Economic Review, American Economic Association, vol. 81(4), pages 979-84, September. [Downloadable!] (restricted)
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  9. Nichols, Albert L & Zeckhauser, Richard J, 1982. "Targeting Transfers through Restrictions on Recipients," American Economic Review, American Economic Association, vol. 72(2), pages 372-77, May. [Downloadable!] (restricted)
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  1. repec:dia:wpaper:dt200707 is not listed on IDEAS
  2. Christophe Muller, 2008. "Anti-Poverty Transfers without Riots in Tunisia," Working Papers. Serie AD 2008-08, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
    Other versions:
  3. Chandra Prakash Bhambhri & Parkash Chander, 2001. "Subsidy Reforms and Poverty Alleviation," IMF Working Papers 01/126, International Monetary Fund. [Downloadable!]
  4. Stefan Dercon & Pramila Krishnan, 2004. "Food Aid and Informal Insurance," Development and Comp Systems 0409026, EconWPA. [Downloadable!]
    Other versions:
  5. Bhaskar Dutta & Bharat Ramaswami, 2002. "Reforming food subsidy scheme: Estimating the gains from self-targetting in India," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 02-09, Indian Statistical Institute, New Delhi, India. [Downloadable!]
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