Reforming food subsidy scheme: Estimating the gains from self-targetting in India
AbstractThis paper uses the theoretical framework of the theory of tax reform to analyse whether a "small" change in an existing food subsidy program can be welfare-improving and revenue-neutral. It shows how existing econometric methods can be adapted to estimate demand parameters even when household level data exhibit little price variation because the government controls food prices. The methodology developed here is used to estimate welfare changes from shifting a rupee of subsidy on existing commodities to coarse cereals in the Indian public distribution system.
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Bibliographic InfoPaper provided by Indian Statistical Institute, New Delhi, India in its series Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers with number 02-09.
Length: 30 pages
Date of creation: Sep 2002
Date of revision:
Other versions of this item:
- Bhaskar Dutta & Bharat Ramaswami, 2004. "Reforming Food Subsidy Schemes: Estimating the Gains from Self-targeting in India," Review of Development Economics, Wiley Blackwell, vol. 8(2), pages 309-324, 05.
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
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- Alderman, Harold & Lindert, Kathy, 1998. "The Potential and Limitations of Self-Targeted Food Subsidies," World Bank Research Observer, World Bank Group, vol. 13(2), pages 213-29, August.
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- Achintya Ray, 2006. "A Class of Decomposable Poverty Measures With Public Transfers," Economics Bulletin, AccessEcon, vol. 9(3), pages 1-8.
- Karami, Ayatollah & Esmaeili, Abdoulkarim & Najafi, Bahadin, 2012. "Assessing effects of alternative food subsidy reform in Iran," Journal of Policy Modeling, Elsevier, vol. 34(5), pages 788-799.
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