This paper shows that when - in the manner of the recent targeting literature - the resources available for poverty relief are allocated across heterogeneous groups so as to minimize a 'well-behaved' index of aggregate poverty, the optimal response to an increase in the needs of some group may be to reduce the resources allocated to it. Necessary and sufficient conditions for optimally-targeted benefits to be inversely related to needs are established under two polar forms of poverty alleviation strategy (pure contingency and strict means-testing) and the wider methodological implications of this possibility discussed.
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Paper provided by Queen's University, Department of Economics in its series Working Papers with number
822.
Keen, Michael, 1992.
"Needs and Targeting,"
Economic Journal,
Royal Economic Society, vol. 102(410), pages 67-79, January.
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Olivier Bargain & Olivier Donni, 2007.
"A Theory of Child Targeting,"
Working Papers
200710, Geary Institute, University College Dublin.
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