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Benefit incidence and the timing of program capture

Author

Listed:
  • Lanjouw, Peter
  • Ravallion, Martin

Abstract

Survey-based estimates of average program participation conditional on income are often used in assessing the distributional impacts of public spending reforms. But program participation could well be nonhomogeneous, so that marginal impacts of program expansion or contraction differ greatly from average impacts. Using the geographic variation found in sample survey data for rural India for 1993-94, the authors estimate the marginal odds of participating in schooling and antipoverty programs. Their results suggest early capture of these programs by the nonpoor. Thus, conventional methods of assessing benefit incidence underestimate the gains to India's rural poor from higher public outlays, and their loss from program cuts.

Suggested Citation

  • Lanjouw, Peter & Ravallion, Martin, 1998. "Benefit incidence and the timing of program capture," Policy Research Working Paper Series 1956, The World Bank.
  • Handle: RePEc:wbk:wbrwps:1956
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    References listed on IDEAS

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    1. Lipton, Michael & Ravallion, Martin, 1995. "Poverty and policy," Handbook of Development Economics,in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 41, pages 2551-2657 Elsevier.
    2. Selden, Thomas M. & Wasylenko, Michael J., 1992. "Benefit incidence analysis in developing countries," Policy Research Working Paper Series 1015, The World Bank.
    3. Bidani, Benu & Ravallion, Martin, 1997. "Decomposing social indicators using distributional data," Journal of Econometrics, Elsevier, vol. 77(1), pages 125-139, March.
    4. Radhakrishna, R. & Subbarao, K., 1997. "India's Public Distribution System. A National and International Perspective," World Bank - Discussion Papers 380, World Bank.
    5. Piggott, John & Whalley, John, 1987. "Interpreting Net Fiscal Incidence Calculations," The Review of Economics and Statistics, MIT Press, vol. 69(4), pages 685-694, November.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Sònia Muñoz & Stanley Sang-Wook Cho, 2003. "Social Impact of a Tax Reform; The Case of Ethiopia," IMF Working Papers 03/232, International Monetary Fund.
    2. Onwujekwe, Obinna & Dike, Nkem & Chukwuka, Chinwe & Uzochukwu, Benjamin & Onyedum, Cajetan & Onoka, Chima & Ichoku, Hyacinth, 2009. "Examining catastrophic costs and benefit incidence of subsidized antiretroviral treatment (ART) programme in south-east Nigeria," Health Policy, Elsevier, vol. 90(2-3), pages 223-229, May.
    3. Martin Ravallion, 2002. "Are the Poor Protected from Budget Cuts? Evidence for Argentina," Journal of Applied Economics, Universidad del CEMA, vol. 5, pages 95-121, May.
    4. Stephen D. Younger & Eric Osei-Assibey & Felix Oppong, 2015. "Fiscal Incidence in Ghana," Commitment to Equity (CEQ) Working Paper Series 1335, Tulane University, Department of Economics.
    5. Melanie Grosse & Kenneth Harttgen & Stephan Klasen, 2006. "Measuring Pro-Poor Progress towards the Non-Income Millennium Development Goals," Ibero America Institute for Econ. Research (IAI) Discussion Papers 144, Ibero-America Institute for Economic Research.
    6. Ravallion,Martin, 2000. "Are the poor protected from budget cuts? theory and evidence for Argentina," Policy Research Working Paper Series 2391, The World Bank.
    7. Stephen D. Younger & Eric Osei-Assibey & Felix Oppong, 2015. "Fiscal Incidence in Ghana," Commitment to Equity (CEQ) Working Paper Series 35, Tulane University, Department of Economics.
    8. Melanie Grosse & Kenneth Harttgen & Stephan Klasen, 2005. "Measuring Pro-Poor Growth with Non-Income Indicators," Ibero America Institute for Econ. Research (IAI) Discussion Papers 132, Ibero-America Institute for Economic Research.
    9. Martin Ravallion, 1999. "Is More Targeting Consistent with Less Spending?," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 6(3), pages 411-419, August.
    10. Kenneth Harttgen & Stephan Klasen & Mark Misselhorn, 2010. "Pro-Poor Progress in Education in Developing Countries?," Review of Economics and Institutions, Università di Perugia, vol. 1(1).
    11. Bernadette Kamgnia Dia & Simon Leunkeu Wangun & Christophe Tatsinkou & Josephine Afor, 2008. "Bénéfices acquis et ciblage des pauvres dans les dépenses publiques de santé et d'éducation au Cameroun," Working Papers PMMA 2008-08, PEP-PMMA.
    12. Martin Ravallion, 2004. "Who is protected from budget cuts?," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 7(2), pages 109-122.
    13. Galasso, Emanuela & Ravallion, Martin, 2000. "Distributional outcomes of a decentralized welfare program," Policy Research Working Paper Series 2316, The World Bank.
    14. Ferreira, Francisco & Prennushi, Giovanna & Ravallion, Martin, 1999. "Protecting the poor from macroeconomic shocks," Policy Research Working Paper Series 2160, The World Bank.
    15. Grosse, Melanie & Harttgen, Kenneth & Klasen, Stephan, 2008. "Measuring Pro-Poor Growth in Non-Income Dimensions," World Development, Elsevier, vol. 36(6), pages 1021-1047, June.

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