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Targeting and child poverty

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  • Olivier Bargain
  • Olivier Donni

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Abstract

We examine the relative merits of targeting children within the household through price subsidies and cash transfers. To do so, we model the behavior of a household composed of one adult and one child. We then show that ‘favorable’ distortions from price subsidies may allow redistributing toward the child and then derive the conditions under which this redistributive scheme is more efficient than cash transfers. The framework is extended to account for possible paternalistic preferences of the social planner and for households composed of two adults with different preferences. Applied to a continuum of households, our approach is extended to the problem of child poverty alleviation. In contrast to the traditional view, we show that well-chosen subsidies may be more cost effective than cash transfers in reducing child poverty. Copyright Springer-Verlag 2012

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Bibliographic Info

Article provided by Springer in its journal Social Choice and Welfare.

Volume (Year): 39 (2012)
Issue (Month): 4 (October)
Pages: 783-808

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Handle: RePEc:spr:sochwe:v:39:y:2012:i:4:p:783-808

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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Transfers to mothers may hurt children
    by Economic Logician in Economic Logic on 2011-05-19 14:39:00
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Cited by:
  1. Olivier Bargain & Olivier Donni & Prudence Kwenda, 2013. "Intrahousehold Distribution and Poverty: Evidence from Côte d’Ivoire," THEMA Working Papers 2013-23, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
  2. Bargain, Olivier & Donni, Olivier, 2011. "Optimal Commodity Taxation and Redistribution within Households," IZA Discussion Papers 5608, Institute for the Study of Labor (IZA).
  3. BARGAIN Olivier & DONNI Olivier, 2010. "The Measurement of Child Costs: A Rothbarth-Type Method Consistent with Scale Economies and Parents? Bargaining," CEPS/INSTEAD Working Paper Series 2010-30, CEPS/INSTEAD.
  4. Olivier Bargain & Olivier Donni, 2010. "The Measurement of Child Costs: A Rothbarth-Type Method Consistent with Scale Economies," Working Papers, School Of Economics, University College Dublin 201001, School Of Economics, University College Dublin.
  5. Bargain, Olivier & Donni, Olivier & Kwenda, Prudence, 2014. "Intrahousehold distribution and poverty: Evidence from Côte d'Ivoire," Journal of Development Economics, Elsevier, vol. 107(C), pages 262-276.

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