Poverty-Efficient Transfer Programs: The Role of Targeting and Allocation Rules
We propose simple graphical methods to identify poverty-reducing transfer program reforms. The methods are based on Program Dominance curves that display cumulative program benefits weighted by powers of poverty gaps. These curves can be decomposed simply as sums of targeting dominance curves and allocation dominance ones, and can serve to verify whether the assessment of program reforms is sensitive to the choice of poverty lines and poverty measures as well as to differences in revenue sources and behavioral impacts across programs.
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