Optimising Anti-Poverty Transfers With Quantile Regressions
Anti-poverty transfer schemes are one of the main way of fightingpoverty. Under perfect observation of incomes, designing such scheme boilsdown to solving an optimisation program under constraints, which can beachieved with well-defined methods. In contrast, when incomes cannot beperfectly observed, the schemes are usually based on predictions of livingstandards using ancillary regressions and household survey data to predict theunobserved living standards of households. In this paper, we study the povertyminimisation program under imperfect information. We show why usingpredictions of living standards helps to deal approximately with an otherwiseintractable problem. Then, we propose a new approach to the practicaloptimisation procedure based on improved predictions of living standards interms of the targeting problem to be solved. Our new empirical methodology totarget direct transfers against poverty is based on observable correlates and onestimation methods that can focus on the poor: the quantile regressions. Weillustrate our results using data from Tunisia.
|Date of creation:||Jun 2006|
|Date of revision:|
|Publication status:||Published by Ivie|
|Contact details of provider:|| Postal: |
Phone: +34 96 319 00 50
Fax: +34 96 319 00 55
Web page: http://www.ivie.es/
More information through EDIRC
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.:
- Powell, James L., 1986. "Censored regression quantiles," Journal of Econometrics, Elsevier, vol. 32(1), pages 143-155, June.
- Schady, Norbert R, 2002.
"Picking the Poor: Indicators for Geographic Targeting in Peru,"
Review of Income and Wealth,
International Association for Research in Income and Wealth, vol. 48(3), pages 417-33, September.
- Schady, Norbert R., 2000. "Picking the poor : indicators for geographic targeting in Peru," Policy Research Working Paper Series 2477, The World Bank.
- Park, Albert & Wang, Sangui & Wu, Guobao, 2002. "Regional poverty targeting in China," Journal of Public Economics, Elsevier, vol. 86(1), pages 123-153, October.
- 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).
- 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," IDEP Working Papers 0602, Institut d'economie publique (IDEP), Marseille, France, revised Apr 2006.
- Glewwe, Paul, 1992. "Targeting assistance to the poor : Efficient allocation of transfers when household income is not observed," Journal of Development Economics, Elsevier, vol. 38(2), pages 297-321, April.
- Ravallion, Martin & Chao, Kalvin, 1989. "Targeted policies for poverty alleviation under imperfect information: Algorithms and applications," Journal of Policy Modeling, Elsevier, vol. 11(2), pages 213-224.
- Chakravarty, Satya R. & Mukherjee, Diganta, 1998. "Optimal subsidy for the poor," Economics Letters, Elsevier, vol. 61(3), pages 313-319, December.
- Glewwe, P. & Kanaan, O., 1989. "Targeting Assistance to the Poor: A Multivariate Approach Using Household Survey Data," Papers 94, Warwick - Development Economics Research Centre.
- Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
- Besley, Timothy J & Kanbur, S M Ravi, 1988. "Food Subsidies and Poverty Alleviation," Economic Journal, Royal Economic Society, vol. 98(392), pages 701-19, September.
- Moshe Buchinsky & Jinyong Hahn, 1998. "An Alternative Estimator for the Censored Quantile Regression Model," Econometrica, Econometric Society, vol. 66(3), pages 653-672, May.
- Bigman, David & Srinivasan, P. V., 2002. "Geographical targeting of poverty alleviation programs: methodology and applications in rural India," Journal of Policy Modeling, Elsevier, vol. 24(3), pages 237-255, June.
When requesting a correction, please mention this item's handle: RePEc:ivi:wpasad:2006-07. 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: (Departamento de Edición)
If references are entirely missing, you can add them using this form.