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Evaluating transfer programs within a general equilibrium framework

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  • Coady, David P.
  • Harris, Rebecca Lee

Abstract

The authors set out a general equilibrium model for the evaluation of a domestically financed transfer program, which helps to combine the results from a computable general equilibrium model with disaggregated household data.Using a Mexican cash transfer program as an illustration, they use the approach to show that the substantial welfare gains that result from the switch from universal food subsidies to targeted cash transfers reflect both the improved targeting efficiency of the latter as well as a relaxation of the trade-off between equity and efficiency objectives when designing tax systems.

Suggested Citation

  • Coady, David P. & Harris, Rebecca Lee, 2001. "Evaluating transfer programs within a general equilibrium framework," FCND discussion papers 110, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:fcnddp:110
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    File URL: https://www.ifpri.org/cdmref/p15738coll2/id/66150/filename/66151.pdf
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    References listed on IDEAS

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    1. Dreze, Jean & Stern, Nicholas, 1987. "The theory of cost-benefit analysis," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 2, chapter 14, pages 909-989, Elsevier.
    2. Zeller, Manfred, 1994. "Determinants of credit rationing: A study of informal lenders and formal credit groups in Madagascar," World Development, Elsevier, vol. 22(12), pages 1895-1907, December.
    3. David Coady, 1997. "Agricultural Pricing Policies in Developing Countries: An Application to Pakistan," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 4(1), pages 39-57, January.
    4. Myles,Gareth D., 1995. "Public Economics," Cambridge Books, Cambridge University Press, number 9780521497695.
    5. Bouis, Howarth E., 1994. "Agricultural technology and food policy to combat iron deficiency in developing countries," FCND discussion papers 1, International Food Policy Research Institute (IFPRI).
    6. Feldstein, Martin S, 1972. "Distributional Equity and the Optimal Structure of Public Prices," American Economic Review, American Economic Association, vol. 62(1), pages 32-36, March.
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    Cited by:

    1. Gaspar Núñez Rodríguez & Clemente Polo Andrés, 2008. "An applied general equilibrium analysis of fiscal reforms to fight poverty in Mexico," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(1), pages 81-115, May.
    2. Coady, David P. & Harris, Rebecca Lee, 2001. "A regional general equilibrium analysis of the welfare impact of cash transfers: An analysis of PROGRESA in Mexico," TMD discussion papers 76, International Food Policy Research Institute (IFPRI).
    3. Nelson, Suzanne & Frakenberger, Tim & Brown, Vicky & Presnall, Carrie & Downen, Jeanne, 2015. "Ex-Post impact assessment review of IFPRI’s research program on social protection, 2000–2012," Impact assessments 40, International Food Policy Research Institute (IFPRI).
    4. Suahasil Nazara & Sri Kusumastuti Rahayu, 2013. "Program Keluarga Harapan (PKH): Indonesian Conditional Cash Transfer Programme," Policy Research Brief 42, International Policy Centre for Inclusive Growth.
    5. Suahasil Nazara & Sri Kusumastuti Rahayu, 2014. "Program Keluarga Harapan (PKH): Programa Indonesio de Transferencia de Ingresos Condicionada," Policy Research Brief 42, International Policy Centre for Inclusive Growth.
    6. Lips, Markus, 2005. "Sufficient nourishment worldwide via transfer payments," Food Policy, Elsevier, vol. 30(1), pages 81-96, February.

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