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Anti-Poverty Transfers without Riots in Tunisia

  • Christophe Muller


    (Universidad de Alicante)

In this paper, we draw some lessons from the Tunisian experience of social reforms and associated civil conflict. Our main interest is the riots that occurred after subsidy cuts and the attempts at substitution of price subsidies by direct cash transfers. We propose new welfare indicators apt to assess policy reforms in such situations. Using micro level data, we show that plausible policy decisions depend on parameters describing the balance between poverty and program exclusion risk. In the Tunisian case, only a much larger weight put on poverty relatively to exclusion could bring the decision maker to substitute the in force price subsidies with direct cash transfers.

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Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 2008-08.

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Length: 36 pages
Date of creation: Apr 2008
Date of revision:
Publication status: Published by Ivie
Handle: RePEc:ivi:wpasad:2008-08
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  30. repec:ema:worpap:2008-37 is not listed on IDEAS
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