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Dynamic Consistency of Multidimensional and Income Targeting: An Application for Mexico Using Panel Data Information

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  • Cesar Bouillon
  • Patricia Yanez-Pagans

Abstract

This paper compares the dynamic consistency of targeting methodologies that use multidimensional welfare indicators with those based on means and proxy means tests using panel data from Mexico. To make these comparisons, an extension of the Alkire and Foster (2008) dual cutoff multidimensional poverty methodology is proposed. This extension provides a relative approach to multidimensional deprivation that ranks individuals according to an aggregate of their relative position in the distribution of a set of welfare attributes or outcomes. The extension gives particular importance to deprivations that affect smaller portions of the population, as these deprivations are especially critical in defining relative multidimensional welfare. The findings, disaggregated by geographical area (urban and rural), suggest that taking into account deprivation in multiple dimensions may lead to more dynamically consistent measures of well-being and thus more dynamically consistent targeting algorithms.

Suggested Citation

  • Cesar Bouillon & Patricia Yanez-Pagans, 2011. "Dynamic Consistency of Multidimensional and Income Targeting: An Application for Mexico Using Panel Data Information," Research Department Publications 4709, Inter-American Development Bank, Research Department.
    • Handle: RePEc:idb:wpaper:4709
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    References listed on IDEAS

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    1. Mirela de Carvalho Pereira da Silva & Ricardo Paes de Barros, 2006. "Pobreza Multidimensional No Brasil," Anais do XXXIV Encontro Nacional de Economia [Proceedings of the 34th Brazilian Economics Meeting] 141, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    2. Luis Felipe López Calva & Eduardo Ortiz Juárez, 2009. "Medición multidimensional de la pobreza en México: significancia estadística en la inclusión de dimensiones no monetarias," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 0(Special i), pages 3-33.
    3. Ricardo Paes de Barros & Mirela de Carvalho & Samuel Franco, 2006. "Pobreza Multidimensional no Brasil," Discussion Papers 1227, Instituto de Pesquisa Econômica Aplicada - IPEA.
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    Cited by:

    1. Morel Berendson, Ricardo & Girón, Liz, 2022. "The multidimensional impacts of the Conditional Cash Transfer program Juntos in Peru," MERIT Working Papers 2022-012, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Ana P. Canedo, 2018. "Analyzing Multidimensional Poverty Estimates in Mexico From an Ethnic Perspective: A Policy Tool for Bridging the Indigenous Gap," Poverty & Public Policy, John Wiley & Sons, vol. 10(4), pages 543-563, December.
    3. Shubhangi Agrawal & Sambit Bhattacharyya & Chirantan Chatterjee & Somdeep Chatterjee, 2024. "Income shock and Women’s Health Spending:Evidence from India," Working Paper Series 1324, Department of Economics, University of Sussex Business School.

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    More about this item

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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