Building a targeting system for Bangladesh based on proxy means testing

Iffath A. Sharif

No 50670, Social Protection Discussion Papers and Notes from The World Bank

Abstract: This paper develops and discusses a Proxy Means Test (PMT) based household targeting system for Bangladesh. The PMT model derived from household survey data includes observable and verifiable characteristics on: (i) household demographics and characteristics of household head; (ii) ownership of assets; (iii) housing quality, and access to facilities and remittances; and (iv) location variables in a formal algorithm to proxy household welfare. Simulations of the model suggest that the proposed PMT formula is able to improve the targeting efficiency a considerable amount when compared to existing targeted safety net programs. However, numerous implementation challenges remain which include but are not limited to a cost-efficient data collection process, effective management of information and a feasible and cost-efficient monitoring and verification system to minimize fraud and leakage.

Keywords: Rural Poverty Reduction; Safety Nets and Transfers; Regional Economic Development; Poverty Monitoring&Analysis (search for similar items in EconPapers)
Date: 2009-08-01
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Citations: View citations in EconPapers (4)

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