Evaluating targeted cash transfer programs: a general equilibrium framework with an application to Mexico

David Coady and Rebecca Lee Harris

No 137, Research reports from International Food Policy Research Institute (IFPRI)

Abstract: This report focuses on the indirect and direct effects of transfer programs. In particular, it shows how modelling results can be combined with information from standard household surveys to provide an integrated analysis of the direct distributional impact of such programs and the indirect distributional and efficiency impacts arising from domestic financing mechanisms. This approach reflects the view that any credible poverty alleviation strategy must have a credible financing strategy underlying it, and this need for domestic financing can have important consequences for both the level and the distribution of household incomes. To illustrate the approach, the report focuses on the recent introduction in Mexico of an innovative poverty alleviation transfer program called PROGRESA, which has been used as a prototype for similar programs that have recently been implemented in other developing countries.

Keywords: development aid; economic theories; income transfers; public safety; cash transfers; Mexico; Northern America; Latin America; Central America (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:fpr:resrep:137

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