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Heterogenous Impact of ‘Rice for the Poor’ Program in Indonesia

  • Pangaribowo, Evita Hanie
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    This study evaluates the impact of the ‘Rice for the Poor’ program – an almost universal program of Indonesian Social Safety Net Program in the time of economic crisis. The program aimed to protect poor households from the negative effects of economic crisis through providing highly subsidized rice price. To assess the impact of the ‘Rice for the Poor’ program, this study utilizes matching estimator approach combined with difference in difference method. The rich longitudinal dataset used in this study enables matching estimator and difference in difference approach to provide accurate estimate of the program’s impact on its beneficiaries. Heterogeneous impact of the program shows that the program has a limited impact on the neediest group. It is found that the ‘Rice for the Poor’ program has a limited impact on the bottom income households. The program has only enabled the poorest households to increase their meat and dairy products expenditures though the treatment effect is very large. The ‘Rice for the Poor’ program has also led to an unintended impact where non targeted households have gained more from the program. The findings suggest that applying conditionality might reduce the errors of inclusion and give more desirable effects for the poor.

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    File URL: http://purl.umn.edu/134755
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    Paper provided by Agricultural Economics Society in its series 86th Annual Conference, April 16-18, 2012, Warwick University, Coventry, UK with number 134755.

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    Date of creation: Apr 2012
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    Handle: RePEc:ags:aesc12:134755
    Contact details of provider: Web page: http://www.aes.ac.uk/
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    1. Abebaw, Degnet & Fentie, Yibeltal & Kassa, Belay, 2010. "The impact of a food security program on household food consumption in Northwestern Ethiopia: A matching estimator approach," Food Policy, Elsevier, vol. 35(4), pages 286-293, August.
    2. Meliyanni Johar, 2007. "The Impact of the Indonesian Health Card Program: A Matching Estimator Approach," Discussion Papers 2007-30, School of Economics, The University of New South Wales.
    3. Jeffrey Smith & Petra Todd, 2003. "Does Matching Overcome Lalonde's Critique of Nonexperimental Estimators?," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers 20035, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
    4. Gilligan, Daniel O. & Hoddinott, John, 2006. "Is there persistence in the impact of emergency food aid? Evidence on consumption, food security, and assets in rural Ethiopia," FCND discussion papers 209, International Food Policy Research Institute (IFPRI).
    5. Block, Steven A. & Kiess, Lynnda & Webb, Patrick & Kosen, Soewarta & Moench-Pfanner, Regina & Bloem, Martin W. & Peter Timmer, C., 2004. "Macro shocks and micro outcomes: child nutrition during Indonesia's crisis," Economics & Human Biology, Elsevier, vol. 2(1), pages 21-44, March.
    6. Giles, John & Satriawan, Elan, 2015. "Protecting child nutritional status in the aftermath of a financial crisis: Evidence from Indonesia," Journal of Development Economics, Elsevier, vol. 114(C), pages 97-106.
    7. Gilligan, Daniel O. & Hoddinott, John, 2007. "AJAE Appendix: Is There Persistence in the Impact of Emergency Food Aid? Evidence on Consumption, Food Security and Assets in Rural Ethiopia," American Journal of Agricultural Economics Appendices, Agricultural and Applied Economics Association, vol. 89(2), May.
    8. Alberto Abadie & Guido W. Imbens, 2008. "On the Failure of the Bootstrap for Matching Estimators," Econometrica, Econometric Society, vol. 76(6), pages 1537-1557, November.
    9. Richard Blundell & Monica Costa Dias, 2000. "Evaluation methods for non-experimental data," Fiscal Studies, Institute for Fiscal Studies, vol. 21(4), pages 427-468, January.
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