Targeted policies for poverty alleviation under imperfect information: Algorithms and applications
In: Journal of policy modeling: JPMOD ; a social science forum of world issues, Band 11, Heft 2, S. 213-224
ISSN: 0161-8938
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In: Journal of policy modeling: JPMOD ; a social science forum of world issues, Band 11, Heft 2, S. 213-224
ISSN: 0161-8938
In: Journal of policy modeling: JPMOD ; a social science forum of world issues, Band 11, Heft 2, S. 213-224
ISSN: 0161-8938
A methodology is proposed for targeting those in need of poverty alleviation with imperfect information on recipients' incomes. A measure of the gain from targeting is also proposed. The problem of allocating a fixed budget for poverty relief among sectors & regions of a less developed country is used as an example, & calculations of poverty-minimizing allocations are presented for Bangladesh, Indonesia, the Philippines, & Sri Lanka. The gains from optimal targeting can be considerable, although they vary widely according to the distributional circumstances of particular countries & the amount of targeting information available to the policymaker. 2 Tables, 14 References. HA