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Efficiency, Equity and Poverty Alleviation: Policy Issues in Less Developed Countries

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  • Bardhan, Pranab

Abstract

In this paper we start by noting that policies that help growth by improving allocational efficiency may also help the poor. We then go on to consider cases where in view of serious agency costs and coordination problems (particularly involving processes in credit and insurance markets) there may be a great deal of scope for trying redistributive projects which at the same time enhance productive efficiency, contrary to the message of efficiency-equity trade-off central to mainstream policy economics. In this context we discuss the efficiency effects of asset distribution programs like land reform. We then examine the merits and costs of targeting transfers aimed at improving their cost-effectiveness, including issues of self-selection by the poor and of targeting disadvantaged groups and backward areas. Finally, we discuss governance structures and focus on the role of.self-governing institutions at the local level in improving efficiency and equity in poverty alleviation.
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Bardhan, Pranab, 1996. "Efficiency, Equity and Poverty Alleviation: Policy Issues in Less Developed Countries," Department of Economics, Working Paper Series qt3jq4h9sc, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    • Handle: RePEc:cdl:econwp:qt3jq4h9sc
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    Cited by:

    1. Muller, Christophe, 2002. "Prices and living standards: evidence for Rwanda," Journal of Development Economics, Elsevier, vol. 68(1), pages 187-203, June.
    2. Begum , Sharifa & Sen, Binayak, 2009. "Maternal Health, Child Well-Being and Chronic Poverty: Does Women's Agency Matter?," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 32(4), pages 69-94, December.
    3. Nafisa Halim & Kathryn Yount & Solveig Cunningham & Rohini Pande, 2016. "Women’s Political Empowerment and Investments in Primary Schooling in India," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 125(3), pages 813-851, February.
    4. Felipe Barrera-Osorio & Deon Filmer, 2016. "Incentivizing Schooling for Learning: Evidence on the Impact of Alternative Targeting Approaches," Journal of Human Resources, University of Wisconsin Press, vol. 51(2), pages 461-499.
    5. Andrea Martinangeli & Peter Martinsson & Amrish Patel, 2017. "Coordination via Redistribution," Working Papers tax-mpg-rps-2017-07, Max Planck Institute for Tax Law and Public Finance.
    6. Roland-Holst, David & Sugiyarto, Guntur, 2014. "Growth Horizons for a Changing Asian Regional Economy," ADB Economics Working Paper Series 392, Asian Development Bank.
    7. Christopher Cramer, 2000. "Inequality, Development and Economic Correctness," Working Papers 105, Department of Economics, SOAS University of London, UK.
    8. Mamadou Gueye & Nicolas Quérou & Raphaël Soubeyran, 2018. "Does equity induce inefficiency? An experiment on coordination," Working Papers hal-02790603, HAL.
    9. Gueye, Mamadou & Quérou, Nicolas & Soubeyran, Raphael, 2020. "Social preferences and coordination: An experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 173(C), pages 26-54.
    10. Gruber, Lloyd & Kosack, Stephen, 2014. "The Tertiary Tilt: Education and Inequality in the Developing World," World Development, Elsevier, vol. 54(C), pages 253-272.
    11. Christophe Muller, 2005. "Poverty and inequality under income and price dispersions," Canadian Journal of Economics, Canadian Economics Association, vol. 38(3), pages 979-998, August.
    12. Amit Nandan & Hrushikesh Mallick, 2020. "Does Gender Equality Matter for Regional Growth and Income Inequality? An Empirical Analysis for the Indian States," Journal of International Development, John Wiley & Sons, Ltd., vol. 32(4), pages 439-469, May.
    13. Pierre‐Richard Agénor, 2005. "The Macroeconomics Of Poverty Reduction," Manchester School, University of Manchester, vol. 73(4), pages 369-434, July.
    14. Christophe Muller, 2006. "Poverty Simulation And Price Changes," Working Papers. Serie AD 2006-13, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    15. Christopher Cramer, 1998. ""Civil War is Not a Stupid Thing": exploring growth, distribution and conflict linkages," Working Papers 73, Department of Economics, SOAS University of London, UK.
    16. Asfaw, Solomon & Cattaneo, Andrea & Pallante, Giacomo & Palma, Alessandro, 2017. "Improving the efficiency targeting of Malawi's farm input subsidy programme: Big pain, small gain?," Food Policy, Elsevier, vol. 73(C), pages 104-118.
    17. World Bank, 2007. "Arab Republic of Egypt : Poverty Assessment Update, Volume 1. Main Report," World Bank Publications - Reports 7642, The World Bank Group.
    18. Bhattacharya, Sourav & Kundu, Tapas, 2014. "Resistance, redistribution and investor-friendliness," Journal of Development Economics, Elsevier, vol. 109(C), pages 124-142.
    19. Guilherme Berse Rodrigues Lambais & Marcelo Marques De Magalhães & José Maria Ferreira Jardim Da Silveira, 2014. "Land Reform And Technical Efficiency: Panel Data Evidence From Northeastern Brazil," Anais do XL Encontro Nacional de Economia [Proceedings of the 40th Brazilian Economics Meeting] 200, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    20. Gruber, Lloyd & Kosack, Stephen, 2014. "The tertiary tilt: education and inequality in the developing world," LSE Research Online Documents on Economics 54202, London School of Economics and Political Science, LSE Library.
    21. Carlos Scartascini & Ernesto Stein & Mariano Tommasi, 2008. "Political Institutions, State Capabilities and Public Policy - International Evidence," Research Department Publications 4608, Inter-American Development Bank, Research Department.
    22. Dethier, Jean-Jacques, 1999. "Governance and Economic Performance: A Survey," Discussion Papers 279846, University of Bonn, Center for Development Research (ZEF).
    23. Arsenio M. Balisacan & Nobuhiko Fuwa, 2004. "Changes in Spatial Income Inequality in the Philippines: An Exploratory Analysis," WIDER Working Paper Series RP2004-34, World Institute for Development Economic Research (UNU-WIDER).
    24. William Ascher, 2023. "Coping with the ambiguities of poverty-alleviation programs and policies: a policy sciences approach," Policy Sciences, Springer;Society of Policy Sciences, vol. 56(2), pages 325-354, June.

    More about this item

    Keywords

    redistribution; targeting; disadvantaged groups; Social and Behavioral Sciences; Economic Policy;
    All these keywords.

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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