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Evaluating Pro-poor Transfers When Targeting is Weak: The Albanian Ndihma Ekonomike Program Revisited

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Author Info
Lucia Mangiavacchi () (Università degli Studi di Firenze, Dipartimento di Scienze Economiche)
Paolo Verme

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Abstract

The Albanian Ndihma Ekonomike is one of the first poverty reduction programs launched in transitional economies. Its record has been judged positively during the recession period of the 1990s and negatively during the more recent growth phase. This paper reconsiders the program using a regression-adjusted matching estimator rst suggested by Heckman et al. (1997, 1998) and exploiting discontinuities in program design and targeting failures. We nd the program to have a weak targeting capacity and a negative and signi cant impact on welfare. We also nd that recent changes introduced to the program have not improved its performance. An analysis of the distributional impact of treatment based on stochastic dominance theory suggests that our results are robust.

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Paper provided by Universita' degli Studi di Firenze, Dipartimento di Scienze Economiche in its series Working Papers Series with number wp2009_08.rdf.

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Length: 38 pages
Date of creation: 2009
Date of revision:
Handle: RePEc:frz:wpaper:wp2009_08.rdf

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Related research
Keywords: Social assistance; Poverty; Impact Evaluation; Albania;

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Find related papers by JEL classification:
H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty
I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
P35 - Economic Systems - - Socialist Institutions and Their Transitions - - - Public Finance
P36 - Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health, Education, Welfare, and Poverty

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    Other versions:
  3. Foster, James E & Shorrocks, Anthony F, 1988. "Poverty Orderings," Econometrica, Econometric Society, vol. 56(1), pages 173-77, January. [Downloadable!] (restricted)
  4. Todd, Petra E., 2008. "Evaluating Social Programs with Endogenous Program Placement and Selection of the Treated," Handbook of Development Economics, Elsevier. [Downloadable!] (restricted)
  5. Heckman, James J & Ichimura, Hidehiko & Todd, Petra, 1998. "Matching as an Econometric Evaluation Estimator," Review of Economic Studies, Blackwell Publishing, vol. 65(2), pages 261-94, April. [Downloadable!] (restricted)
  6. Heckman, James J & Ichimura, Hidehiko & Todd, Petra E, 1997. "Matching as an Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Blackwell Publishing, vol. 64(4), pages 605-54, October. [Downloadable!] (restricted)
  7. Michael Lokshin & Martin Ravallion, 2000. "Welfare Impacts of the 1998 Financial Crisis in Russia and the Response of the Public Safety Net," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 8(2), pages 269-295, July. [Downloadable!] (restricted)
  8. Galasso, Emanuela & Ravallion, Martin, 2005. "Decentralized targeting of an antipoverty program," Journal of Public Economics, Elsevier, vol. 89(4), pages 705-727, April. [Downloadable!] (restricted)
  9. Case, Anne, 2001. "Election goals and income redistribution: Recent evidence from Albania," European Economic Review, Elsevier, vol. 45(3), pages 405-423, March. [Downloadable!] (restricted)
    Other versions:
  10. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Blackwell Publishing, vol. 22(1), pages 31-72, 02. [Downloadable!] (restricted)
    Other versions:
  11. Edwin Leuven & Barbara Sianesi, 2003. "PSMATCH2: Stata module to perform full Mahalanobis and propensity score matching, common support graphing, and covariate imbalance testing," Statistical Software Components S432001, Boston College Department of Economics, revised 02 May 2009. [Downloadable!]
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