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Picking the poor : indicators for geographic targeting in Peru

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  • Schady, Norbert R.

Abstract

Geographic targeting is perhaps the most popular mechanism used to direct social programs to the poor in Latin America. The author empirically compares geographic targeting indicators available in Peru. He combines household-level information from the 1994 and 1997 Peru Living Standards Measurement Surveys and district-level information from the 1993 Peru Population and Housing Census. He then conducts a series of simulations that estimate leakage rates; concentration curves; the impact of transfers on poverty as measured by the headcount index, poverty gap, and [poverty]measures of the Foster-Greer-Thorbecke family; and nonparametric (kernal) densities when transfers are based on alternative indicators. He concludes that there is substantial potential for geographic targeting in Peru. The differences in outcomes across geographic targeting indicators are small and not statistically significant.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2477.

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Date of creation: 30 Nov 2000
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Handle: RePEc:wbk:wbrwps:2477

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Related research

Keywords: Poverty Monitoring&Analysis; Rural Poverty Reduction; Safety Nets and Transfers; Services&Transfers to Poor; Health Economics&Finance;

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References

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  1. Jalan, Jyotsna & Ravallion, Martin, 1998. "Transient Poverty in Postreform Rural China," Journal of Comparative Economics, Elsevier, vol. 26(2), pages 338-357, June.
  2. Datt, Gaurav & Ravallion, Martin, 1990. "Regional disparities, targeting, and poverty in India," Policy Research Working Paper Series 375, The World Bank.
  3. Besley, Timothy & Kanbur, Ravi, 1990. "The principles of targeting," Policy Research Working Paper Series 385, The World Bank.
  4. Hentschel, Jesko & Lanjouw, Jean Olson & Lanjouw, Peter & Poggi, Javier, 1998. "Combining census and survey data to study spatial dimensions of poverty," Policy Research Working Paper Series 1928, The World Bank.
  5. Ravallion, Martin & Sen, Binayak & DEC, 1994. "How land-based targeting affects rural poverty," Policy Research Working Paper Series 1270, The World Bank.
  6. Hoff, Karla, 2008. "Joseph E. Stiglitz," Policy Research Working Paper Series 4478, The World Bank.
  7. Paxson, Christina H, 1992. "Using Weather Variability to Estimate the Response of Savings to Transitory Income in Thailand," American Economic Review, American Economic Association, American Economic Association, vol. 82(1), pages 15-33, March.
  8. Ravallion, M., 1992. "Poverty Comparisons - A Guide to Concepts and Methods," Papers, World Bank - Living Standards Measurement 88, World Bank - Living Standards Measurement.
  9. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, Econometric Society, vol. 52(3), pages 761-66, May.
  10. Chaudhuri, Shubham & Ravallion, Martin, 1994. "How well do static indicators identify the chronically poor?," Journal of Public Economics, Elsevier, Elsevier, vol. 53(3), pages 367-394, March.
  11. Kanbur, Ravi & Keen, Michael & Tuomala, Matti, 1994. "Labor Supply and Targeting in Poverty Alleviation Programs," World Bank Economic Review, World Bank Group, World Bank Group, vol. 8(2), pages 191-211, May.
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