Is more targeting consistent with less spending?
Economists often advise governments to target their spending better when cuts are called for. The author asks whether that advice is consistent with a political economy constraint that limits the welfare losses to the nonpoor from spending cuts. A simple theoretical model shows that the answer is unclear on a priori grounds and so will depend on the specifics of program design and financing. A case study for a World Bank-supported social program in Argentina illustrates how cuts can come with worse targeting performance: The allocation to the poor falls faster than that to the nonpoor. The author draws some lessons for how the poor might be better protected from cuts.
|Date of creation:||31 Mar 1999|
|Date of revision:|
|Contact details of provider:|| Postal: 1818 H Street, N.W., Washington, DC 20433|
Phone: (202) 477-1234
Web page: http://www.worldbank.org/
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.:
- Ravallion, 1999.
"Monitoring targeting performance when decentralized allocation to the poor are unobserved,"
Policy Research Working Paper Series
2080, The World Bank.
- Ravallion, Martin, 2000. "Monitoring Targeting Performance When Decentralized Allocations to the Poor Are Unobserved," World Bank Economic Review, World Bank Group, vol. 14(2), pages 331-45, May.
- Lanjouw, Peter & Ravallion, Martin, 1998. "Benefit incidence and the timing of program capture," Policy Research Working Paper Series 1956, The World Bank.
- De Donder, Philippe & Hindriks, Jean, 1998.
"The Political Economy of Targeting,"
Springer, vol. 95(1-2), pages 177-200, April.
- Ravallion, Martin, 1999. "Are poorer states worse at targeting their poor?," Economics Letters, Elsevier, vol. 65(3), pages 373-377, December.
When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:2079. 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: (Roula I. Yazigi)
If references are entirely missing, you can add them using this form.