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Evaluating the cost of poverty alleviation transfer programs: an illustration based on PROGRESA in Mexico

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  • Coady, David
  • Perez, Raul
  • Vera-Ilamas, Hadid

Abstract

"A common criticism of antipoverty programs is that the high share of administrative (nontransfer) costs substantially reduces their effectiveness in alleviating poverty. Yet there is surprisingly little hard empirical evidence on such programs' costs. A recent international review of targeted poverty alleviation programs in less developed countries found cost information which was rarely comparable between studies for fewer than one-third of the programs examined. Improved information and a better understanding of the costs of such programs are crucial for effective policymaking. This study proposes and implements a methodology for a comparative analysis of the level and structure of costs of three similar poverty alleviation programs in Latin America, in order to assess their cost-efficiency. The findings underscore that any credible assessment of cost-efficiency requires a detailed analysis of program cost structures that goes well beyond simply providing aggregate cost information." Authors' Abstract

Suggested Citation

  • Coady, David & Perez, Raul & Vera-Ilamas, Hadid, 2004. "Evaluating the cost of poverty alleviation transfer programs: an illustration based on PROGRESA in Mexico," FCND discussion papers 174, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:fcnddp:174
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    File URL: https://hdl.handle.net/10568/160647
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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 - Books, The World Bank Group, number 14902, April.
    2. Newman, John & Rawlings, Laura & Gertler, Paul, 1994. "Using Randomized Control Designs in Evaluating Social Sector Programs in Developing Countries," The World Bank Research Observer, World Bank, vol. 9(2), pages 181-201, July.
    3. Hoddinott, John & Skoufias, Emmanuel, 2004. "The Impact of PROGRESA on Food Consumption," Economic Development and Cultural Change, University of Chicago Press, vol. 53(1), pages 37-61, October.
    4. Haddad, Lawrence J. & Adato, Michelle, 2001. "How effectively do public works programs transfer benefits to the poor? evidence from South Africa," FCND discussion papers 108, International Food Policy Research Institute (IFPRI).
    5. Behrman, Jere R. & Hoddinott, John F., 2001. "An evaluation of the impact of PROGRESA on preschool child height," FCND briefs 104, International Food Policy Research Institute (IFPRI).
    6. Behrman, Jere R & Sengupta, Piyali & Todd, Petra, 2005. "Progressing through PROGRESA: An Impact Assessment of a School Subsidy Experiment in Rural Mexico," Economic Development and Cultural Change, University of Chicago Press, vol. 54(1), pages 237-275, October.
    7. Schultz, T. Paul, 2001. "School subsidies for the poor," FCND briefs 102, International Food Policy Research Institute (IFPRI).
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