Optimising Anti-Poverty Transfers With Quantile Regressions
AbstractUnder perfect observation of incomes, designing such scheme boils down to solving an optimisation program under constraints, which can be achieved with well-defined methods. In contrast, when incomes cannot be perfectly observed, the schemes are usually based on predictions of living standards using ancillary regressions and household survey data to predict the unobserved living standards of households. In this paper, we study the poverty minimisation program under imperfect information. We show why using predictions of living standards helps to deal approximately with an otherwise intractable problem. Then, we propose a new approach to the practical optimisation procedure based on improved predictions of living standards in terms of the targeting problem to be solved. Our new empirical methodology to target direct transfers against poverty is based on observable correlates and on estimation methods that can focus on the poor: the quantile regressions. We illustrate our results using data from Tunisia.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Institut d'economie publique (IDEP), Marseille, France in its series IDEP Working Papers with number 0601.
Length: 30 pages
Date of creation: Feb 2006
Date of revision: Feb 2006
Poverty minimization; Quantile regressions; Policy targeting.;
Other versions of this item:
- Christophe Muller, 2006. "Optimising Anti-Poverty Transfers With Quantile Regressions," Working Papers. Serie AD 2006-07, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- NEP-ALL-2006-08-05 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Moshe Buchinsky & Jinyong Hahn, 1998. "An Alternative Estimator for the Censored Quantile Regression Model," Econometrica, Econometric Society, vol. 66(3), pages 653-672, May.
- Schady, Norbert R., 2000.
"Picking the poor : indicators for geographic targeting in Peru,"
Policy Research Working Paper Series
2477, The World Bank.
- Schady, Norbert R, 2002. "Picking the Poor: Indicators for Geographic Targeting in Peru," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 48(3), pages 417-33, September.
- Christophe Muller & Sami Bibi, 2006.
"Focused Targeting Against Poverty Evidence From Tunisia,"
Working Papers. Serie AD
2006-01, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Christophe Muller & Sami Bibi, 2007. "Focused Targeting against Poverty Evidence from Tunisia," Working Papers DT/2007/07, DIAL (Développement, Institutions et Mondialisation).
- Christophe Muller & Sami Bibi, 2006. "Focused Targeting against Poverty Evidence from Tunisia," IDEP Working Papers 0602, Institut d'economie publique (IDEP), Marseille, France, revised Apr 2006.
- Glewwe, P. & Kanaan, O., 1989. "Targeting Assistance to the Poor: A Multivariate Approach Using Household Survey Data," Papers 94, Warwick - Development Economics Research Centre.
- Chakravarty, Satya R. & Mukherjee, Diganta, 1998. "Optimal subsidy for the poor," Economics Letters, Elsevier, vol. 61(3), pages 313-319, December.
- Glewwe, Paul, 1992. "Targeting assistance to the poor : Efficient allocation of transfers when household income is not observed," Journal of Development Economics, Elsevier, vol. 38(2), pages 297-321, April.
- Bigman, David & Srinivasan, P. V., 2002. "Geographical targeting of poverty alleviation programs: methodology and applications in rural India," Journal of Policy Modeling, Elsevier, vol. 24(3), pages 237-255, June.
- Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
- Besley, Timothy J & Kanbur, S M Ravi, 1988. "Food Subsidies and Poverty Alleviation," Economic Journal, Royal Economic Society, vol. 98(392), pages 701-19, September.
- Powell, James L., 1986. "Censored regression quantiles," Journal of Econometrics, Elsevier, vol. 32(1), pages 143-155, June.
- Ravallion, Martin & Chao, Kalvin, 1989. "Targeted policies for poverty alleviation under imperfect information: Algorithms and applications," Journal of Policy Modeling, Elsevier, vol. 11(2), pages 213-224.
- Park, Albert & Wang, Sangui & Wu, Guobao, 2002. "Regional poverty targeting in China," Journal of Public Economics, Elsevier, vol. 86(1), pages 123-153, October.
- Christophe Muller, . "Anti-Poverty Transfers and Spatial Prices in Tunisia," Discussion Papers 08/13, University of Nottingham, CREDIT.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Yves Doazan) The email address of this maintainer does not seem to be valid anymore. Please ask Yves Doazan to update the entry or send us the correct address.
If references are entirely missing, you can add them using this form.