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Targeting Performance under Self-selection and Administrative Targeting Methods

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  • David P. Coady
  • Susan W. Parker

Abstract

We evaluate the contributions of self-selection and administrative targeting to program targeting performance using unique household survey data collected for the evaluation of a Mexican social program that has acted as a regional prototype. Both forms of targeting improve targeting performance, but administrative selection based on proxy-means testing plays a crucial role in reducing total program coverage (to meet a budget constraint) while maintaining high coverage among the lowest income groups. Its importance is reinforced when existing knowledge barriers to participation are addressed, reflecting the high application rates among higher-income groups conditional on knowledge. Differentiating transfers based on household demographics also substantially improves targeting performance reflecting the linking of transfers to the number of children. Although expansion of the program to reduce the remaining undercoverage is likely to come at the expense of targeting performance, this trade-off can be reduced by improving the underlying proxy-means algorithm and linking transfer levels directly to proxy-means scores. The latter should also improve the contribution of self-selection to targeting performance. (c) 2009 by The University of Chicago. All rights reserved..

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Bibliographic Info

Article provided by University of Chicago Press in its journal Economic Development and Cultural Change.

Volume (Year): 57 (2009)
Issue (Month): 3 (04)
Pages: 559-587

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Handle: RePEc:ucp:ecdecc:v:57:y:2009:i:3:p:559-587

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Web page: http://www.journals.uchicago.edu/EDCC/

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Cited by:
  1. Coady, David & Martinelli, Cesar & Parker, Susan W., 2013. "Information and participation in social programs," Policy Research Working Paper Series 6319, The World Bank.
  2. Baird, Sarah & McIntosh, Craig & Özler, Berk, 2013. "The regressive demands of demand-driven development," Journal of Public Economics, Elsevier, vol. 106(C), pages 27-41.
  3. González-Flores, Mario & Heracleous, Maria & Winters, Paul, 2012. "Leaving the Safety Net: An Analysis of Dropouts in an Urban Conditional Cash Transfer Program," World Development, Elsevier, vol. 40(12), pages 2505-2521.
  4. Peralta, Maria Alexandra & Swinton, Scott M. & Maredia, Mywish K., 2011. "Accounting for selection bias in impact analysis of a rural development program: An application using propensity score matching," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126398, International Association of Agricultural Economists.
  5. Houssou, Nazaire & Zeller, Manfred & Alcaraz V., Gabriela & Johannsen, Julia & Schwarze, Stefan, 2010. "How Best to Target the Poor? An operational targeting of the poor using indicator-based proxy means tests," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 95780, African Association of Agricultural Economists (AAAE) & Agricultural Economics Association of South Africa (AEASA).

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