Targeting the Poor Using Community Information
AbstractGovernments and aid agencies target transfers to the poor, but audits to deter the rich are costly. This paper analyzes how community information can reduce targeting costs. If each community is given a hard budget constraint, then targeting costs can be substantially reduced by asking recipients to make reports about each other. Such a scheme is immune to collusion. Community information is of no help in targeting, however, if (a) it cannot be veri…ed by audits or (b) the government cannot commit to a hard budget constraint.
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Bibliographic InfoPaper provided by Center for International Development at Harvard University in its series CID Working Papers with number 22.
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Postal: Center for International Development at Harvard University (CID). 79 John F. Kennedy Street, Cambridge, MA 02138.
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More information through EDIRC
Targeting; Community Information; Audits; Collusion; Poverty.;
Find related papers by JEL classification:
- I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
This paper has been announced in the following NEP Reports:
- NEP-ALL-2001-02-27 (All new papers)
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