Could the Behavioral Responses Justify the Absence of Direct Transfers to Fight Poverty in MENA Region?
While cash transfers through proxy means tests have increased over the last decade in Latin America to fight poverty, consumption subsidies remain the common form of redistributive income in most MENA countries. There may be many reasons for this such as their administrative costs, effects on labor supply and private transfers, and the absence of political support for more targeted programs. The literature offers several ex post approaches to capture the behavioral responses cost of implemented socio-demographic targeting transfers. In this paper, we suggest an ex ante approach to judge whether the behavioral incidence of counterfactual socio-demographic targeting transfers may explain the absence of this policy intervention. Our methodology is illustrated using a household survey from Tunisia and counterfactual direct transfers based upon socio-demographic targeting. The results suggest that poverty could be decreased robustly by adopting the counterfactual design even if it leads to stronger behavioral responses when compared to the consumption subsidy program. However, more targeted transfers will not automatically meet with the approval of the majority of citizens.
|Date of creation:||Apr 2008|
|Date of revision:||Apr 2008|
|Publication status:||Published by The Economic Research Forum (ERF)|
|Contact details of provider:|| Postal: 21 Al-Sad Al Aaly St. Dokki, Giza|
Web page: http://www.erf.org.eg
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:erg:wpaper:396. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Namees Nabeel)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.