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Poverty-dominant program reforms: the role of targeting and allocation rules

  • Paul Makdissi

    ()

    (Département d'économique, Université de Sherbrooke)

  • Quentin Wodon

    ()

    (AFTPM, World Bank)

  • Jean-Yves Duclos

    ()

    (Pavillon De sève, Université Laval, Sainte-Foy, Québec, Canada)

We propose simple graphical methods to identify poverty-reducing marginal reforms of transfer programs. 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 marginal program reforms is sensitive to the choice of poverty lines and poverty measures as well as to differences across programs in revenue sources and incentive effects.

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Paper provided by Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke in its series Cahiers de recherche with number 02-11.

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Length: 30 pages
Date of creation: 2002
Date of revision: 2004
Handle: RePEc:shr:wpaper:02-11
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  1. repec:cup:cbooks:9780521397421 is not listed on IDEAS
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  12. Shorrocks, Anthony F, 1995. "Revisiting the Sen Poverty Index," Econometrica, Econometric Society, vol. 63(5), pages 1225-30, September.
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  15. Makdissi, Paul & Wodon, Quentin, 2002. "Consumption dominance curves: testing for the impact of indirect tax reforms on poverty," Economics Letters, Elsevier, vol. 75(2), pages 227-235, April.
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  23. Baker, Judy L. & Grosh, Margaret E., 1994. "Poverty reduction through geographic targeting: How well does it work?," World Development, Elsevier, vol. 22(7), pages 983-995, July.
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  25. Satya Ranjan Chakravarty, 1983. "Ethically Flexible Measures of Poverty," Canadian Journal of Economics, Canadian Economics Association, vol. 16(1), pages 74-85, February.
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  28. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
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  33. Ravallion, Martin & Huppi, Monika, 1991. "Measuring Changes in Poverty: A Methodological Case Study of Indonesia during an Adjustment Period," World Bank Economic Review, World Bank Group, vol. 5(1), pages 57-82, January.
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  35. Buhong Zheng, 1999. "On the power of poverty orderings," Social Choice and Welfare, Springer, vol. 16(3), pages 349-371.
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