Can Proxy Means Testing Improve the Targeting Performance of Social Safety Nets in Bangladesh?

Iffath A. Sharif
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Iffath A. Sharif: Senior Economist, South Asia Social Protection Unit, The World Bank

Bangladesh Development Studies, 2012, vol. 35, issue 2, 1-43

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 by a considerable amount when compared with existing targeted safety net programmes. 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 minimise fraud and leakage.

Keywords: Targeting; Proxy Means Test; Safety Nets; Bangladesh (search for similar items in EconPapers)
JEL-codes: C15 I38 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (1)

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