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Agriculture Income Assessment for the Purpose of Social Assistance: the Case of Ukraine

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  • Dmytro Boyarchuk
  • Liudmyla Kotusenko
  • Katarzyna Pietka-Kosinska
  • Roman Semko
  • Irina Sinitsina

Abstract

Ukraine belongs to the group of countries which are known for the widespread phenomenon of subsistence and semi-subsistence farming. Individual farmers are not obliged to produce financial reports and their incomes belong to the category of unobservable incomes. When checking the eligibility for social assistance the level of their incomes needs to be estimated. In a country, where poverty rate is quite high, the coverage of the poor with financial aid is relatively low and public finances under constant control, the importance of a fair and justified methodology for income imputation is particularly strong. In this situation, an outdated and unfair current system of agriculture income estimation in Ukraine calls for immediate changes. This paper presents recommendations for the Ukrainian government in the area of agriculture income imputation, where several methods of estimating farm income were proposed (including the one based on Household Budget Survey). The recommendations were preceded with the analysis of five countries' practices in this area: Kazakhstan, Kyrgyzstan, Moldova, Russia, and Poland. A review of different means testing methods, including direct means testing and proxy means testing, served as an introduction to the topic.

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Bibliographic Info

Paper provided by CASE-Center for Social and Economic Research in its series CASE Network Studies and Analyses with number 0399.

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Length: 66 Pages
Date of creation: Dec 2009
Date of revision:
Handle: RePEc:sec:cnstan:0399

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Keywords: subsistence and semi-subsistence farming; hard to verify income; farm household income; income (agro-income) imputation; means testing methods;

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  1. Sumarto, Sudarno & Suryahadi, Asep & Pritchett, Lant, 2003. "Safety Nets or Safety Ropes? Dynamic Benefit Incidence of Two Crisis Programs in Indonesia," World Development, Elsevier, vol. 31(7), pages 1257-1277, July.
  2. Celia M. Reyes, 2006. "Alternative Means Testing Options Using CBMS," Development Economics Working Papers 22685, East Asian Bureau of Economic Research.
  3. Houssou, Nazaire & Zeller, Manfred & Alcaraz V., Gabriela & Schwarze, Stefan & Johannsen, Julia, 2007. "Proxy Means Tests for Targeting the Poorest Households -- Applications to Uganda," 106th Seminar, October 25-27, 2007, Montpellier, France 7946, European Association of Agricultural Economists.
  4. Robert Holzmann & David A. Robalino & Noriyuki Takayama, 2009. "Closing the Coverage Gap : The Role of Social Pensions and Other Retirement Income Transfers," World Bank Publications, The World Bank, number 2651, February.
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  6. Virginia Hernanz & Franck Malherbet & Michele Pellizzari, 2004. "Take-Up of Welfare Benefits in OECD Countries: A Review of the Evidence," OECD Social, Employment and Migration Working Papers 17, OECD Publishing.
  7. Ahmed, Akhter U. & Bouis, Howarth E., 2002. "Weighing what's practical: proxy means tests for targeting food subsidies in Egypt," Food Policy, Elsevier, vol. 27(5-6), pages 519-540.
  8. Angel-Urdinola, Diego & Wodon, Quentin, 2008. "Assessing the Targeting Performance of Social Programs: Cape Verde," MPRA Paper 11072, University Library of Munich, Germany.
  9. Margaret Grosh & David Coady & John Hoddinott, 2003. "Targeting Methods for Transfers," World Bank Other Operational Studies 11817, The World Bank.
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