Targeting Maps: An Asset-Based Approach to Geographic Targeting

Proper targeting of policy interventions requires reasonable estimates of the benefits of the alternative options. To inform such decisions, we develop an integrated approach stemming from the small-area estimation literature that estimates the marginal returns to a range of assets across geographically defined subpopulations. We create a series of maps that can be overlaid with traditional poverty maps to identify strong candidate areas for intervention, though an efficiency/equity tradeoff sometimes exists. We apply our method using recent Ugandan data. Results are consistent with independent empirical findings and suggest asset specific transfer schemes would improve with a spatially targeted strategy.