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Evaluating transfer programs within a general equilibrium framework

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  • Coady, David P.
  • Harris, Rebecca Lee
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    Abstract

    The authors set out a general equilibrium model for the evaluation of a domestically financed transfer program, which helps to combine the results from a computable general equilibrium model with disaggregated household data.Using a Mexican cash transfer program as an illustration, they use the approach to show that the substantial welfare gains that result from the switch from universal food subsidies to targeted cash transfers reflect both the improved targeting efficiency of the latter as well as a relaxation of the trade-off between equity and efficiency objectives when designing tax systems.

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    File URL: http://www.ifpri.org/sites/default/files/publications/fcndp110.pdf
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    Bibliographic Info

    Paper provided by International Food Policy Research Institute (IFPRI) in its series FCND discussion papers with number 110.

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    Date of creation: 2001
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    Handle: RePEc:fpr:fcnddp:110

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    Keywords: FCND ; Subsidies Mexico. ; Transfer payments. ; Equilibrium (Economics) Models. ;

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    1. David Coady, 1997. "Agricultural Pricing Policies in Developing Countries: An Application to Pakistan," International Tax and Public Finance, Springer, vol. 4(1), pages 39-57, January.
    2. Bouis, Howarth E., 1994. "Agricultural technology and food policy to combat iron deficiency in developing countries," FCND discussion papers 1, International Food Policy Research Institute (IFPRI).
    3. Dreze, Jean & Stern, Nicholas, 1987. "The theory of cost-benefit analysis," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 2, chapter 14, pages 909-989 Elsevier.
    4. Feldstein, Martin S, 1972. "Distributional Equity and the Optimal Structure of Public Prices," American Economic Review, American Economic Association, vol. 62(1), pages 32-36, March.
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    Cited by:
    1. Coady, David P. & Harris, Rebecca Lee, 2001. "A regional general equilibrium analysis of the welfare impact of cash transfers," TMD discussion papers 76, International Food Policy Research Institute (IFPRI).
    2. Lips, Markus, 2005. "Sufficient nourishment worldwide via transfer payments," Food Policy, Elsevier, vol. 30(1), pages 81-96, February.
    3. Gaspar Núñez Rodríguez & Clemente Polo Andrés, 2008. "An applied general equilibrium analysis of fiscal reforms to fight poverty in Mexico," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(1), pages 81-115, May.
    4. Suahasil Nazara & Sri Kusumastuti Rahayu, 2013. "Program Keluarga Harapan (PKH): Indonesian Conditional Cash Transfer Programme," Policy Research Brief 42, International Policy Centre for Inclusive Growth.

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