Consumption and Poverty: How Effective Are In-Kind Transfers?

Daniel T Slesnick

Economic Journal, 1996, vol. 106, issue 439, 1527-45

Abstract: The ability of in-kind transfers to alleviate poverty depends on accurate targeting as well as recipients' valuations of the benefits. Using data from the Consumer Expenditure Surveys, the efficiency of in-kind transfers is examined in a microsimulation framework in which recipients are identified as those who have the lowest consumption. In this framework, in-kind transfers of food, capital services (which includes housing), and consumer services are an effective means of providing support to the poor even at high levels of subsidization. The multiple good transfers that are considered are essentially equivalent to cash grants. Copyright 1996 by Royal Economic Society.

Date: 1996
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