Policies for the Poor: Verifying the Information Base

M. H. Suryanarayana

Journal of Quantitative Economics, 2011, vol. 9, issue 1, 73-88

Abstract: This paper illustrates how policy formulation without prior data verification would not make much sense and serve any purpose. Given the National Sample Survey (NSS) finding on substantial errors of inclusion of the non-poor in the targeted Public Distribution System (PDS) and its extenuation that all the targeted beneficiaries are genuinely poor, we examine how valid is the explanation and hence, the recommendation for a universal PDS. Contrary to the general perception, the targeted PDS is universal and the need of the hour is to address the error of excluding the genuinely poor rather than provide a universal PDS/cash transfer.

Date: 2011
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