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Private Household Transfers and Poverty Alleviation in Rural India

Author

Listed:
  • Deepak Lal

    (Deepak Lal is at the University of California, Los Angeles; e-mail: dlal@ucla.edu)

  • Anuj Sharma

    (Anuj Sharma is at the National Council for Applied Economic Research, New Delhi; e-mail: anujsharma@ncaer.org)

Abstract

A transfer function for private household transfers in rural India is estimated from the National Council of Applied Economic Research's (NCAER's) ARIS-REDS survey for 1998–99. It is found that till a threshold, income (close to the rural poverty line) transfers are altruistically motivated. There is partial ‘crowding out’ of private transfers by public transfers of Rs 0.56 for every rupee of public transfer. About 10 per cent of rural households participate in the rural private ‘transfer economy’, with transfers going to relatively well-educated, pensionless, aged destitutes who have a number of adults to support.

Suggested Citation

  • Deepak Lal & Anuj Sharma, 2009. "Private Household Transfers and Poverty Alleviation in Rural India," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 3(2), pages 97-112, April.
    • Handle: RePEc:sae:mareco:v:3:y:2009:i:2:p:97-112
    DOI: 10.1177/097380100900300201
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Private Household Transfer Function; Crowding Out; Rural India; JEL Classification: D13; JEL Classification: H31; JEL Classification: I38; JEL Classification: O15;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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