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Targeting the Poor Using Community Information

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  • Ashok S. Rai

Abstract

Governments 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.

Suggested Citation

  • Ashok S. Rai, "undated". "Targeting the Poor Using Community Information," CID Working Papers 22, Center for International Development at Harvard University.
    • Handle: RePEc:wop:cidhav:22
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    File URL: http://www.cid.harvard.edu/cidwp/pdf/revised22.pdf
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Targeting; Community Information; Audits; Collusion; Poverty.;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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