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Benefit Incidence Analysis of Public Spending on Education in the Philippines: A Methodological Note

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  • Cuenca, Janet S.
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    Abstract

    Benefit incidence analysis (BIA) is a tool used to assess how tax policy or government subsidy affects the distribution of welfare in the population. In other words, it evaluates the distribution of government subsidies among different groups in the population, in particular, among different income groups. The methodology involved in benefit incidence approach is straightforward. Nevertheless, defining deciles (or quintiles) is critical as benefit incidence estimates depend heavily on the number of individuals occupying each decile (or quintile) cell. Deciles can be defined over population, i.e., across individuals and across households. The purpose of this methodological note is to briefly illustrate the difference in benefit incidence estimates that are obtained when deciles of population/individuals in lieu of deciles of households are used in the analysis as applied on government spending on education in the Philippines.

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    Bibliographic Info

    Paper provided by Philippine Institute for Development Studies in its series Discussion Papers with number DP 2008-09.

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    Length: 21
    Date of creation: 2008
    Date of revision:
    Handle: RePEc:phd:dpaper:dp_2008-09

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    Related research

    Keywords: targeting; education; benefit incidence analysis; Gini coefficient; concentration coefficient; concentration curve; progressivity;

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    1. David Coady & Margaret Grosh & John Hoddinott, 2004. "Targeting of Transfers in Developing Countries : Review of Lessons and Experience," World Bank Publications, The World Bank, number 14902, August.
    2. Erwin Tiongson & Hamid Reza Davoodi & Sawitree S. Asawanuchit, 2003. "How Useful Are Benefit Incidence Analyses of Public Education and Health Spending," IMF Working Papers 03/227, International Monetary Fund.
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