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Local Distributional Effects of Government Cash Transfers in Chile




Despite rapid economic growth and poverty reduction, inequality in Chile has remained high and remarkably constant over the last 20 years,prompting academic and public interest in the subject. Due to data limitations, however, research on inequality in Chile has concentrated on the national and regional levels. The impact of cash subsidies to poor households on local inequality is thus not well understood. Using povertymapping methods to asses this impact, we find heterogeneity in the effectiveness of regional and municipal governments in reducing inequality via poverty-reduction transfers, suggesting that alternative targeting regimes may complement current practice in aiding the poor.

Suggested Citation

  • Claudio Agostini & Phillip Brown, 2007. "Local Distributional Effects of Government Cash Transfers in Chile," ILADES-Georgetown University Working Papers inv181, Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines.
  • Handle: RePEc:ila:ilades:inv181

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    References listed on IDEAS

    1. Ravallion, Martin & Chen, Shaohua, 1997. "What Can New Survey Data Tell Us about Recent Changes in Distribution and Poverty?," World Bank Economic Review, World Bank Group, vol. 11(2), pages 357-382, May.
    2. Ravallion, Martin, 2003. "Inequality convergence," Economics Letters, Elsevier, vol. 80(3), pages 351-356, September.
    3. Ravallion, Martin, 2001. "Growth, Inequality and Poverty: Looking Beyond Averages," World Development, Elsevier, vol. 29(11), pages 1803-1815, November.
    4. Simler, Kenneth R. & Nhate, Virgulino, 2005. "Poverty, inequality, and geographic targeting," FCND briefs 192, International Food Policy Research Institute (IFPRI).
    5. Simler, Kenneth R., 2006. "Nutrition mapping in Tanzania: an exploratory analysis," FCND briefs 204, International Food Policy Research Institute (IFPRI).
    6. Ravallion, Martin & Chen, Shaohua, 2007. "China's (uneven) progress against poverty," Journal of Development Economics, Elsevier, vol. 82(1), pages 1-42, January.
    7. Simler, Kenneth R. & Nhate, Virgulino, 2005. "Poverty, inequality, and geographic targeting: Evidence from Small-Area Estimates in Mozambique," FCND discussion papers 192, International Food Policy Research Institute (IFPRI).
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    Cited by:

    1. Claudio Agostini & Phillip Brown & Andrei Roman, 2008. "Poverty Estimating Poverty for Indigenous Groups by Matching Census and Survey Data," ILADES-Georgetown University Working Papers inv207, Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines.
    2. Modrego, F. & Ramírez, E. & Tartakowsky, A., 2008. "La heterogeneidad espacial del desarrollo económico en Chile," Working papers 009, Rimisp Latin American Center for Rural Development.
    3. Dang,Hai-Anh H. & Lanjouw,Peter F., 2013. "Measuring poverty dynamics with synthetic panels based on cross-sections," Policy Research Working Paper Series 6504, The World Bank.
    4. Claudio A. Agostini, & Philip H. Brown, & Andrei Roman, 2008. "Estimating Poverty for Indigenous Groups in Chile by Matching Census and Survey Data," William Davidson Institute Working Papers Series wp932, William Davidson Institute at the University of Michigan.
    5. Claudio A Agostini & Bárbara Flores & Claudia Martinez, 2011. "Equidad Tributaria Horizontal en el Impuesto al Ingreso en Chile," Working Papers wp_012, Adolfo Ibáñez University, School of Government.
    6. Modrego, F. & Celis, X. & Berdegué, J., 2008. "Polarización étnica de los ingresos rurales en el sur de Chile," Working papers 015, Rimisp Latin American Center for Rural Development.
    7. Modrego, Félix & Berdegué, Julio A., 2015. "A Large-Scale Mapping of Territorial Development Dynamics in Latin America," World Development, Elsevier, vol. 73(C), pages 11-31.
    8. Dang, Hai-Anh & Lanjouw, Peter & Luoto, Jill & McKenzie, David, 2014. "Using repeated cross-sections to explore movements into and out of poverty," Journal of Development Economics, Elsevier, vol. 107(C), pages 112-128.

    More about this item


    Inequality; poverty mapping; government cash transfers; Chile;

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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