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:||03 Jan 2008|
|Date of revision:||03 Jan 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
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Francois Bourguignon & Luiz A. Pereira da Silva, 2003. "The Impact of Economic Policies on Poverty and Income Distribution : Evaluation Techniques and Tools," World Bank Publications, The World Bank, number 15090, April.
- Sergei Soares & Rafael Guerreiro Osório & Fábio Veras Soares & Marcelo Medeiros & Eduardo Zepeda, 2009.
"Conditional cash transfers in Brazil, Chile and Mexico: impacts upon inequality,"
El Colegio de México, Centro de Estudios Económicos, vol. 0(Special i), pages 207-224.
- Sergei Suarez Dillon Soares & Rafael Guerreiro Osório & Fabio Veras Soares & Marcelo Medeiros & Eduardo Zepeda, 2007. "Conditional Cash Transfers in Brazil, Chile and Mexico: Impacts upon Inequality," Working Papers 35, International Policy Centre for Inclusive Growth.
- Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, vol. 55(4), pages 749-764, July.
- Tuck, L. & Lindert, K., 1996. "From Universal Food Subsidies to a Self-Targeted Program: A Case Study in Tunisian Reform," World Bank - Discussion Papers 351, World Bank.
- Bibi Sami, 2003. "On the Impact of Better Targeted Transfers on Poverty in Tunisia," Review of Middle East Economics and Finance, De Gruyter, vol. 1(1), pages 17-35, January.
- Bibi, Sami, 2002. "On the Impact of Better Targeted Transfers on Poverty in Tunisia," Cahiers de recherche 0203, CIRPEE.
- Christophe Muller & Sami Bibi, 2006. "Focused Targeting against Poverty Evidence from Tunisia," IDEP Working Papers 0602, Institut d'economie publique (IDEP), Marseille, France, revised Apr 2006.
- Christophe Muller & Sami Bibi, 2007. "Focused Targeting against Poverty Evidence from Tunisia," Working Papers DT/2007/07, DIAL (Développement, Institutions et Mondialisation).
- Christophe Muller & Sami Bibi, 2006. "Focused Targeting Against Poverty Evidence From Tunisia," Working Papers. Serie AD 2006-01, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Grosh, M.E. & Baker, J.L., 1995. "Proxy Means Tests for Targetting Social Programs. Simulations and Speculation," Papers 118, World Bank - Living Standards Measurement.
- Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-231, March.
- Jalan, Jyotsna & Ravallion, Martin, 2003. "Estimating the Benefit Incidence of an Antipoverty Program by Propensity-Score Matching," Journal of Business & Economic Statistics, American Statistical Association, vol. 21(1), pages 19-30, January.
- Jyotsna Jalan & Martin Ravallion, 2000. "Estimating the Benefit Incidence of an Antipoverty Program by Propensity Score Matching," Econometric Society World Congress 2000 Contributed Papers 0873, Econometric Society.
- Zheng, Buhong, 1997. " Aggregate Poverty Measures," Journal of Economic Surveys, Wiley Blackwell, vol. 11(2), pages 123-162, June.
- Zheng, Buhong, 2000. " Poverty Orderings," Journal of Economic Surveys, Wiley Blackwell, vol. 14(4), pages 427-466, September.
- King, Mervyn A., 1983. "Welfare analysis of tax reforms using household data," Journal of Public Economics, Elsevier, vol. 21(2), pages 183-214, July. Full references (including those not matched with items on IDEAS)
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.