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Estimation of rates of return on social protection: Making the case for non-contributory social transfers in Cambodia

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Author Info

  • Mideros Mora, Andres

    ()
    (UNU-MERIT / MGSoG)

  • Gassmann, Franziska

    ()
    (UNU-MERIT / MGSoG)

  • Mohnen, Pierre

    ()
    (UNU-MERIT / MGSoG)

Abstract

This study estimates the rates of return (RoR) of non-contributory social transfer programmes in Cambodia using household data and going beyond standard cost efficiency analyses by developing a dynamic micro simulation. It shows that social protection promotes equitable economic growth by enhancing human development and fostering economic performance at the micro level. A positive RoR is achieved after 12 periods and can reach between 12 per cent and 15 per cent after 20 periods. This study shows that micro simulation models can be extended in order to analyse the economic returns on social protection.

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Bibliographic Info

Paper provided by United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT) in its series MERIT Working Papers with number 063.

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Date of creation: 20 Nov 2013
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Handle: RePEc:unm:unumer:2013063

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Keywords: social protection; non-contributory social transfers; microsimulation; rate of return;

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  1. Davies, Simon & Davey, James, 2007. "A regional multiplier approach to estimating the impact of cash transfers: The case of cash aid in rural Malawi," MPRA Paper 3724, University Library of Munich, Germany.
  2. Szirmai, Adam, 2012. "Proximate, intermediate and ultimate causality: Theories and experiences of growth and development," MERIT Working Papers 032, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  3. Timothy Besley & Robin Burgess, 2003. "Halving Global Poverty," Journal of Economic Perspectives, American Economic Association, vol. 17(3), pages 3-22, Summer.
  4. Li, Jinjing & O'Donoghue, Cathal, 2012. "A methodological survey of dynamic microsimulation models," MERIT Working Papers 002, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  5. Armando Barrientos & Rachel Sabatés-Wheeler, 2009. "Do transfers generate local economy effects?," Brooks World Poverty Institute Working Paper Series 10609, BWPI, The University of Manchester.
  6. Li, Jinjing & O'Donoghue, Cathal, 2012. "A methodological survey of dynamic microsimulation models," MERIT Working Papers 002, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  7. Armando Barrientos & James Scott, 2008. "Social Transfers and Growth: A Review," Brooks World Poverty Institute Working Paper Series 5208, BWPI, The University of Manchester.
  8. Jolliffe, Dean, 2002. "Whose Education Matters in the Determination of Household Income? Evidence from a Developing Country," Economic Development and Cultural Change, University of Chicago Press, vol. 50(2), pages 287-312, January.
  9. Isabel Ortiz & Jingqing Chai & Matthew Cummins, 2011. "Escalating Food Prices: The threat to poor households and policies to safeguard a Recovery for All," Working papers 1101, UNICEF,Division of Policy and Strategy.
  10. Merz, Joachim, 1994. "Microsimulation - A Survey of Methods and Applications for Analyzing Economic and Social Policy," MPRA Paper 7232, University Library of Munich, Germany.
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