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Focused Targeting Against Poverty Evidence From Tunisia

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  • Christophe Muller

    ()
    (Universidad de Alicante)

  • Sami Bibi

    (Faculté des Sciences Economiques et de Gestion de Tunis (FSEGT))

Abstract

This paper introduces a new methodology to target direct transfers against poverty. Our method is based on observable correlates and on estimation methods that focus on the poor. Using data from Tunisia, we estimate ‘focused’ transfer schemes that improve anti-poverty targeting performances. Post-transfer poverty can be substantially reduced with the new estimation method. The impact of these schemes on the welfare of the poor is also much stronger than the current food subsidies system in Tunisia. Finally, the obtained levels of undercoverage of the poor is so low that ‘proxy-means’ focused transfer schemes becomes a realistic alternative to price subsidies, likely to avoid social unrest.

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Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 2006-01.

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Length: 43 pages
Date of creation: Feb 2006
Date of revision:
Publication status: Published by Ivie
Handle: RePEc:ivi:wpasad:2006-01

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Keywords: Poverty; Targeting; Transfers;

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Cited by:
  1. Christophe Muller, 2006. "Optimising Anti-Poverty Transfers With Quantile Regressions," Working Papers. Serie AD 2006-07, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  2. Christophe MULLER and Sami BIBI, 2008. "Focused Transfer Targeting against Poverty Evidence from Tunisia," THEMA Working Papers 2008-37, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.

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