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Identifying targeting with nonparametric methods: An application to an Indian microfinance program

Author

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  • Rohini Somanathan

    (Indian Statistical Institute, New Delhi)

  • Isha Dewan

    (Indian Statistical Institute, New Delhi)

Abstract

We discuss nonparametric methods and statistical tests that are appropriate to assess poverty targeting in public programs. These methods explicitly account for the possibility that the population distributions of participants and non-participants cross. Crossing points provide us with upper bounds on the income of those who have been excluded from the program. Applying these methods to data from a microfinance program in the state of Jharkhand in India, we find evidence that very poorest households are largely excluded from the program.

Suggested Citation

  • Rohini Somanathan & Isha Dewan, 2003. "Identifying targeting with nonparametric methods: An application to an Indian microfinance program," Discussion Papers 03-11, Indian Statistical Institute, Delhi.
    • Handle: RePEc:alo:isipdp:03-11
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    File URL: http://www.isid.ac.in/~planning/workingpapers/dp03-11.pdf
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • O22 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis

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