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Identifying targeting with nonparametric methods: An application to an Indian microfinance program

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  • Rohini Somanathan

    ()
    (Indian Statistical Institute, New Delhi)

  • Isha Dewan

    (Indian Statistical Institute, New Delhi)

Abstract

We discuss nonparametric methods and statistical tests that are appropriate to assess poverty targeting in public programs. These methods explicitly account for the possibility that the population distributions of participants and non-participants cross. Crossing points provide us with upper bounds on the income of those who have been excluded from the program. Applying these methods to data from a microfinance program in the state of Jharkhand in India, we find evidence that very poorest households are largely excluded from the program.

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Bibliographic Info

Paper provided by Indian Statistical Institute, New Delhi, India in its series Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers with number 03-11.

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Length: 27 pages
Date of creation: Jul 2003
Date of revision:
Handle: RePEc:ind:isipdp:03-11

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  1. Ravallion, Martin, 1991. "Reaching the Rural Poor through Public Employment: Arguments, Evidence, and Lessons from South Asia," World Bank Research Observer, World Bank Group, vol. 6(2), pages 153-75, July.
  2. James J. Heckman & Jeffrey A. Smith, 2004. "The Determinants of Participation in a Social Program: Evidence from a Prototypical Job Training Program," Journal of Labor Economics, University of Chicago Press, vol. 22(2), pages 243-298, April.
  3. Christina Paxson & Norbert R. Schady, 2002. "The Allocation and Impact of Social Funds: Spending on School Infrastructure in Peru," World Bank Economic Review, World Bank Group, vol. 16(2), pages 297-319, August.
  4. Sharma, Manohar, 2000. "Microfinance," MP05 briefs 0, International Food Policy Research Institute (IFPRI).
  5. Chen, Guijing & Chen, Jiahua & Chen, Yuming, 2002. "Statistical inference on comparing two distribution functions with a possible crossing point," Statistics & Probability Letters, Elsevier, vol. 60(3), pages 329-341, December.
  6. Castro-Leal, Florencia & Dayton, Julia & Demery, Lionel & Mehra, Kalpana, 1999. "Public Social Spending in Africa: Do the Poor Benefit?," World Bank Research Observer, World Bank Group, vol. 14(1), pages 49-72, February.
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