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Evaluating the Distributive Effects of a Development Intervention

Author

Listed:
  • Pushkar Maitra

    (Department of Economics, Monash University)

  • Sandip Mitra

    (Sampling and Official Statistics Unit, Indian Statistical Institute)

  • Dilip Mookherjee

    (Department of Economics, Boston University)

  • Sujata Visaria

    (Department of Economics, The Hong Kong University of Science and Technology)

Abstract

Most analyses of randomized controlled trials of development interventions estimate an average treatment effect. However, the aggregate impact on welfare also depends on distributional effects. We propose a simple approach to evaluate efficiency-equity trade-offs, that follow the utilitarian tradition of Atkinson (1970). The method does not impose additional assumptions or data requirements beyond those needed to estimate the average treatment effect. We illustrate the approach using data from a credit delivery experiment we implemented in West Bengal, India.

Suggested Citation

  • Pushkar Maitra & Sandip Mitra & Dilip Mookherjee & Sujata Visaria, 2021. "Evaluating the Distributive Effects of a Development Intervention," HKUST CEP Working Papers Series 202106, HKUST Center for Economic Policy.
    • Handle: RePEc:hke:wpaper:wp2021-06
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    References listed on IDEAS

    as
    1. Kevin W. S. Roberts, 1980. "Interpersonal Comparability and Social Choice Theory," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(2), pages 421-439.
    2. Maitra, Pushkar & Mitra, Sandip & Mookherjee, Dilip & Motta, Alberto & Visaria, Sujata, 2017. "Financing smallholder agriculture: An experiment with agent-intermediated microloans in India," Journal of Development Economics, Elsevier, vol. 127(C), pages 306-337.
    3. Bedoya Arguelles,Guadalupe & Bittarello,Luca & Davis,Jonathan Martin Villars & Mittag,Nikolas Karl & Bedoya Arguelles,Guadalupe & Bittarello,Luca & Davis,Jonathan Martin Villars & Mittag,Nikolas Karl, 2017. "Distributional impact analysis: toolkit and illustrations of impacts beyond the average treatment effect," Policy Research Working Paper Series 8139, The World Bank.
    4. Newbery, David M, 1995. "The Distributional Impact of Price Changes in Hungary and the United Kingdom," Economic Journal, Royal Economic Society, vol. 105(431), pages 847-863, July.
    5. Pushkar Maitra & Sandip Mitra & Dilip Mookherjee & Sujata Visaria, 2020. "Decentralized Targeting of Agricultural Credit Programs: Private versus Political Intermediaries," HKUST IEMS Working Paper Series 2020-70, HKUST Institute for Emerging Market Studies, revised Jan 2020.
    6. David P. Coady & Rebecca L. Harris, 2004. "Evaluating transfer programmes within a general equilibrium framework," Economic Journal, Royal Economic Society, vol. 114(498), pages 778-799, October.
    7. Sandip Mitra & Dilip Mookherjee & Maximo Torero & Sujata Visaria, 2018. "Asymmetric Information and Middleman Margins: An Experiment with Indian Potato Farmers," The Review of Economics and Statistics, MIT Press, vol. 100(1), pages 1-13, March.
    8. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Distributive Impacts; Program Evaluation; Agricultural Finance;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation

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