Optimising Anti-Poverty Transfers With Quantile Regressions
AbstractAnti-poverty transfer schemes are one of the main way of fightingpoverty. Under perfect observation of incomes, designing such scheme boilsdown to solving an optimisation program under constraints, which can beachieved with well-defined methods. In contrast, when incomes cannot beperfectly observed, the schemes are usually based on predictions of livingstandards using ancillary regressions and household survey data to predict theunobserved living standards of households. In this paper, we study the povertyminimisation program under imperfect information. We show why usingpredictions of living standards helps to deal approximately with an otherwiseintractable problem. Then, we propose a new approach to the practicaloptimisation procedure based on improved predictions of living standards interms of the targeting problem to be solved. Our new empirical methodology totarget direct transfers against poverty is based on observable correlates and onestimation methods that can focus on the poor: the quantile regressions. Weillustrate 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 Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 2006-07.
Length: 29 pages
Date of creation: Jun 2006
Date of revision:
Publication status: Published by Ivie
Poverty minimization; Quantile regressions; Policy targeting.;
Other versions of this item:
- Christophe Muller, 2006. "Optimising Anti-Poverty Transfers With Quantile Regressions," IDEP Working Papers, Institut d'economie publique (IDEP), Marseille, France 0601, Institut d'economie publique (IDEP), Marseille, France, revised Feb 2006.
- NEP-ALL-2006-06-17 (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.:
- Glewwe, P. & Kanaan, O., 1989. "Targeting Assistance to the Poor: A Multivariate Approach Using Household Survey Data," Papers, Warwick - Development Economics Research Centre 94, Warwick - Development Economics Research Centre.
- 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.
- Christophe Muller & Sami Bibi, 2006.
"Focused Targeting Against Poverty Evidence From Tunisia,"
Working Papers. Serie AD, Instituto Valenciano de Investigaciones EconÃ³micas, S.A. (Ivie)
2006-01, Instituto Valenciano de Investigaciones EconÃ³micas, S.A. (Ivie).
- Christophe Muller & Sami Bibi, 2006. "Focused Targeting against Poverty Evidence from Tunisia," IDEP Working Papers, Institut d'economie publique (IDEP), Marseille, France 0602, Institut d'economie publique (IDEP), Marseille, France, revised Apr 2006.
- Christophe Muller & Sami Bibi, 2007. "Focused Targeting against Poverty Evidence from Tunisia," Working Papers DT/2007/07, DIAL (Développement, Institutions et Mondialisation).
- 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.
- Schady, Norbert R., 2000. "Picking the poor : indicators for geographic targeting in Peru," Policy Research Working Paper Series 2477, The World Bank.
- Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, Econometric Society, vol. 52(3), pages 761-66, May.
- Park, Albert & Wang, Sangui & Wu, Guobao, 2002. "Regional poverty targeting in China," Journal of Public Economics, Elsevier, vol. 86(1), pages 123-153, October.
- Moshe Buchinsky & Jinyong Hahn, 1998. "An Alternative Estimator for the Censored Quantile Regression Model," Econometrica, Econometric Society, Econometric Society, vol. 66(3), pages 653-672, May.
- Powell, James L., 1986. "Censored regression quantiles," Journal of Econometrics, Elsevier, vol. 32(1), pages 143-155, June.
- 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.
- Besley, Timothy J & Kanbur, S M Ravi, 1988. "Food Subsidies and Poverty Alleviation," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 98(392), pages 701-19, September.
- 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.
- Chakravarty, Satya R. & Mukherjee, Diganta, 1998. "Optimal subsidy for the poor," Economics Letters, Elsevier, vol. 61(3), pages 313-319, December.
- 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: (Departamento de Edición).
If references are entirely missing, you can add them using this form.