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Equity and Policy Effectiveness with Imperfect Targeting

  • Sami Bibi

    ()

    (CIRPEE and Faculté des Sciences Economiques et de Gestion de Tunis (FSEGT), Campus Universitaire)

  • Jean-Yves Duclos

We propose a general approach that jointly integrates horizontal and vertical equity criteria in the assessment of poverty alleviation programs, with the strength of each criterion captured through its own inequity-aversion parameter. This contrasts with the assessment of poverty alleviation programs done with simple under-coverage and leakage ratios or with other methods that do not take into account the heterogeneity of the poor and that do not address directly the social benefits of achieving normative criteria. We illustrate our methodology by using Tunisian data and two alternative poverty alleviation policies. We find inter alia that the social ranking of commodity and socio-demographic targeting in Tunisia depends on the policymaker's comparative preference for vertical and horizontal equity.

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Paper provided by Economic Research Forum in its series Working Papers with number 0423.

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Length: 26 pages
Date of creation: Oct 2004
Date of revision: Oct 2004
Publication status: Published by The Economic Research Forum (ERF)
Handle: RePEc:erg:wpaper:0423
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