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Benefit Incidence Analysis of Public Spending on Education in the Philippines : A Methodological Note

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  • Janet S. Cuenca

    (PIDS)

Abstract

Benefit incidence analysis (BIA) is a tool used to assess how tax policy or government subsidy affects the distribution of welfare in the population. In other words, it evaluates the distribution of government subsidies among different groups in the population, in particular, among different income groups. The methodology involved in benefit incidence approach is straightforward. Nevertheless, defining deciles (or quintiles) is critical as benefit incidence estimates depend heavily on the number of individuals occupying each decile (or quintile) cell. Deciles can be defined over population, i.e., across individuals and across households. The purpose of this methodological note is to briefly illustrate the difference in benefit incidence estimates that are obtained when deciles of population/individuals in lieu of deciles of households are used in the analysis as applied on government spending on education in the Philippines.

Suggested Citation

  • Janet S. Cuenca, 2008. "Benefit Incidence Analysis of Public Spending on Education in the Philippines : A Methodological Note," Development Economics Working Papers 22627, East Asian Bureau of Economic Research.
  • Handle: RePEc:eab:develo:22627
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    File URL: http://www.eaber.org/node/22627
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    References listed on IDEAS

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    1. David Coady & Margaret Grosh & John Hoddinott, 2004. "Targeting of Transfers in Developing Countries : Review of Lessons and Experience," World Bank Publications, The World Bank, number 14902.
    2. Rosario G. Manasan & Janet S. Cuenca & Eden C. Villanueva-Ruiz, 2008. "Benefit Incidence of Public Spending on Education in the Philippines," Development Economics Working Papers 22660, East Asian Bureau of Economic Research.
    3. Manasan, Rosario G. & Cuenca, Janet S. & Villanueva-Ruiz, Eden C., 2008. "Benefit Incidence of Public Spending on Education in the Philippines," Discussion Papers DP 2008-08, Philippine Institute for Development Studies.
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    Cited by:

    1. Soile, Ismail & Mu, Xiaoyi, 2015. "Who benefit most from fuel subsidies? Evidence from Nigeria," Energy Policy, Elsevier, vol. 87(C), pages 314-324.

    More about this item

    Keywords

    benefit incidence analysis; targeting; progressivity; Gini Coefficient; Concentration Coefficient; concentration curve; education;

    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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