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The Cost of Poverty Alleviation Transfer Programs: A Comparative Analysis of Three Programs in Latin America

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Author Info

  • John Maluccio

    ()

  • Natàlia Caldés

    ()

  • David Coady

    ()

Abstract

A common criticism of antipoverty programs is that the high share of administrative (nontransfer) costs substantially reduces their effectiveness. Yet, there is surprisingly little rigorous empirical evidence on program costs. Improved information and a better understanding of the costs of such programs are crucial for effective policymaking. This study proposes and implements a replicable methodology for a comparative cost analysis of three similar poverty alleviation programs in Latin America, and assesses their cost efficiency. The findings underscore that any credible assessment of cost-efficiency requires a detailed analysis of program cost structures that goes well beyond simply providing aggregate cost information.

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File URL: http://www.middlebury.edu/services/econ/repec/mdl/ancoec/0527.pdf
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Bibliographic Info

Paper provided by Middlebury College, Department of Economics in its series Middlebury College Working Paper Series with number 0527.

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Length: 44 pages
Date of creation: Sep 2005
Date of revision:
Handle: RePEc:mdl:mdlpap:0527

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Related research

Keywords: cost efficiency; poverty alleviation; human capital; Honduras; Mexico; Nicaragua;

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References

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  1. Coady, David P., 2001. "An evaluation of the distributional power of PROGRESA's cash transfers in Mexico," FCND discussion papers 117, International Food Policy Research Institute (IFPRI).
  2. Hoddinott, John & Skoufias, Emmanuel, 2004. "The Impact of PROGRESA on Food Consumption," Economic Development and Cultural Change, University of Chicago Press, vol. 53(1), pages 37-61, October.
  3. Coady, David & Perez, Raul & Vera-Ilamas, Hadid, 2005. "Evaluating the cost of poverty alleviation transfer programs: An Illustration Based on PROGRESA in Mexico," FCND discussion papers 199, International Food Policy Research Institute (IFPRI).
  4. Jere R. Behrman & John Hoddinott, 2005. "Programme Evaluation with Unobserved Heterogeneity and Selective Implementation: The Mexican "PROGRESA" Impact on Child Nutrition," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 67(4), pages 547-569, 08.
  5. repec:idb:brikps:14378 is not listed on IDEAS
  6. Coady, David P., 2001. "An evaluation of the distributional power of PROGRESA's cash transfers in Mexico," FCND briefs 117, International Food Policy Research Institute (IFPRI).
  7. Paul Schultz, T., 2004. "School subsidies for the poor: evaluating the Mexican Progresa poverty program," Journal of Development Economics, Elsevier, vol. 74(1), pages 199-250, June.
  8. Behrman, Jere R & Sengupta, Piyali & Todd, Petra, 2005. "Progressing through PROGRESA: An Impact Assessment of a School Subsidy Experiment in Rural Mexico," Economic Development and Cultural Change, University of Chicago Press, vol. 54(1), pages 237-75, October.
  9. Skoufias, Emmanuel, 2005. "PROGRESA and its impacts on the welfare of rural households in Mexico:," Research reports 139, International Food Policy Research Institute (IFPRI).
  10. Maluccio, John A. & Flores, Rafael, 2005. "Impact evaluation of a conditional cash transfer program: the Nicaraguan Red de Protección Social," Research reports 141, International Food Policy Research Institute (IFPRI).
  11. Nat�lia Caldés & John A. Maluccio, 2005. "The cost of conditional cash transfers," Journal of International Development, John Wiley & Sons, Ltd., vol. 17(2), pages 151-168.
  12. Newman, John & Rawlings, Laura & Gertler, Paul, 1994. "Using Randomized Control Designs in Evaluating Social Sector Programs in Developing Countries," World Bank Research Observer, World Bank Group, vol. 9(2), pages 181-201, July.
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Citations

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Cited by:
  1. Ponce, Juan & Bedi, Arjun S., 2010. "The impact of a cash transfer program on cognitive achievement: The Bono de Desarrollo Humano of Ecuador," Economics of Education Review, Elsevier, vol. 29(1), pages 116-125, February.
  2. Maluccio, John A. & Flores, Rafael, 2004. "Impact evaluation of a conditional cash transfer program," FCND discussion papers 184, International Food Policy Research Institute (IFPRI).
  3. Akresh, Richard & de Walque, Damien & Kazianga, Harounan, 2013. "Cash transfers and child schooling : evidence from a randomized evaluation of the role of conditionality," Policy Research Working Paper Series 6340, The World Bank.
  4. Christophe Muller, 2008. "Anti-Poverty Transfers without Riots in Tunisia," IDEP Working Papers 0801, Institut d'economie publique (IDEP), Marseille, France, revised Mar 2008.
  5. Galiani, Sebastian & McEwan, Patrick J., 2013. "The heterogeneous impact of conditional cash transfers," Journal of Public Economics, Elsevier, vol. 103(C), pages 85-96.
  6. Charity Moore, 2009. "Nicaragua?s Red de Protección Social: An Exemplary but Short-Lived Conditional Cash Transfer Programme," Country Study 17, International Policy Centre for Inclusive Growth.
  7. John A. Maluccio, 2007. "The Impact of Conditional Cash Transfers on Consumption and Investment in Nicaragua," Middlebury College Working Paper Series 0722, Middlebury College, Department of Economics.
  8. de Brauw, Alan & Hoddinott, John, 2008. "Must conditional cash transfer programs be conditioned to be effective?: The impact of conditioning transfers on school enrollment in Mexico," IFPRI discussion papers 757, International Food Policy Research Institute (IFPRI).
  9. Lofgren, Hans, 2012. "World food prices and human development: Policy simulations for archetype low-income countries," Policy Research Working Paper Series 6033, The World Bank.
  10. John A. Maluccio & Alexis Murphy & Ferdinando Regalia, 2009. "Does Supply Matter? Initial Supply Conditions and the Effectiveness of Conditional Cash Transfers for Grade Progression in Nicaragua," Middlebury College Working Paper Series 0908, Middlebury College, Department of Economics.
  11. Patrick J. McEwan, 2011. "Cost-Effectiveness Analysis of Education and Health Interventions in Developing Countries," SPD Working Papers 1102, Inter-American Development Bank, Office of Strategic Planning and Development Effectiveness (SPD).
  12. Ariel Fiszbein & Norbert Schady & Francisco H. G. Ferreira & Margaret Grosh & Niall Keleher & Pedro Olinto & Emmanuel Skoufias, 2009. "Conditional Cash Transfers : Reducing Present and Future Poverty," World Bank Publications, The World Bank, number 2597, January.
  13. González-Flores, Mario & Heracleous, Maria & Winters, Paul, 2012. "Leaving the Safety Net: An Analysis of Dropouts in an Urban Conditional Cash Transfer Program," World Development, Elsevier, vol. 40(12), pages 2505-2521.

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