Focused Transfer Targeting against Poverty Evidence from Tunisia

Christophe Muller and Sami Bibi ()

No 2008-37, THEMA Working Papers from THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise

Abstract: This paper introduces a new methodology to target direct transfers against poverty. Our method is based on estimation methods that focus on the poor. Using data from Tunisia, we estimate ‘focused’ transfer schemes that highly improve anti-poverty targeting performances. Post-transfer poverty can be substantially reduced with the new estimation method. In terms of P2, the most popular axiomatically valid poverty indicator, a 30 percent reduction in poverty from transfer schemes based on OLS method to focused transfer schemes, requires only a few hours of computer work based on methods available on popular statistical packages. Finally, the obtained levels of under-coverage of the poor is so low that reforms based on ‘proxy-means’ focused transfer schemes are likely to avoid social unrest.

Keywords: Poverty; Targeting; Transfers. (search for similar items in EconPapers)
JEL-codes: D12 D63 H53 I32 I38 (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:ema:worpap:2008-37

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