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Picking the Poor: Indicators for Geographic Targeting in Peru

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  • Schady, Norbert R

Abstract

Geographic targeting is perhaps the most popular mechanism used to direct social programs to the poor in Latin America. This paper empirically compares geographic targeting indicators available in Peru. To this effect, I combine household-level information from the 1997 Peru Living Standards Measurement Survey (LSMS) and district-level information from the 1993 Peru Population and Housing Census. I then conduct a series of simulations which estimate leakage rates, concentration curves, the impact of transfers on poverty as measured by the headcount index, poverty gap and P[subscript 2] measures of the FGT family, and non-parametric (kernel) densities when transfers are based on alternative indicators. I conclude that there is substantial potential for geographic targeting in Peru. However, the differences in outcomes across geographic targeting indicators are small, and are not statistically significant. These results are in keeping with earlier work which suggests that (among reasonable alternatives) the choice of geographic targeting indicator does not have an important bearing on poverty outcomes, and are at odds with more recent research which stresses the advantage of poverty maps which "impute" consumption or income. Copyright 2002 by The International Association for Research in Income and Wealth.

Suggested Citation

  • Schady, Norbert R, 2002. "Picking the Poor: Indicators for Geographic Targeting in Peru," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 48(3), pages 417-433, September.
    • Handle: RePEc:bla:revinw:v:48:y:2002:i:3:p:417-33
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    Cited by:

    1. Christophe Muller, 2016. "Optimal transfers with distribution regressions: An application to Egypt at the dawn of the XXIst century," WIDER Working Paper Series 179, World Institute for Development Economic Research (UNU-WIDER).
    2. Bibi, Sami & Duclos, Jean-Yves, 2007. "Equity and policy effectiveness with imperfect targeting," Journal of Development Economics, Elsevier, vol. 83(1), pages 109-140, May.
    3. Christophe Muller, 2007. "Anti-Poverty Transfers without Riots in Tunisia," Working Papers DT/2007/08, DIAL (Développement, Institutions et Mondialisation).
    4. Claudio A. Agostini & Philip H. Brown, 2011. "Cash Transfers And Poverty Reduction In Chile," Journal of Regional Science, Wiley Blackwell, vol. 51(3), pages 604-625, August.
    5. David Stifel & Harold Alderman, 2006. "The "Glass of Milk" Subsidy Program and Malnutrition in Peru," The World Bank Economic Review, World Bank, vol. 20(3), pages 421-448.
    6. repec:dau:papers:123456789/4713 is not listed on IDEAS
    7. Philippe De Vreyer & Javier Herrera & Sandrine Mesplé-Somps, 2002. "Consumption growth and spatial poverty traps: an analysis of the effects of social services and community infrastructures on living standards in rural Peru," Working Papers DT/2002/17, DIAL (Développement, Institutions et Mondialisation), revised Oct 2003.
    8. Kristjanson, P. & Krishna, A. & Radeny, M. & Kuan, J. & Quilca, G. & Sanchez-Urrelo, A. & Leon-Velarde, C., 2007. "Poverty dynamics and the role of livestock in the Peruvian Andes," Agricultural Systems, Elsevier, vol. 94(2), pages 294-308, May.
    9. Christophe Muller, 2018. "Optimal Cash Transfers with Distribution Regressions: An Application to Egypt at the Dawn of the XXIst Century," Working Papers halshs-01684570, HAL.
    10. Sadoulet, Elisabeth & de Janvry, Alain, 2004. "Making Conditional Cash Transfer Programs More Efficient," CUDARE Working Papers 25009, University of California, Berkeley, Department of Agricultural and Resource Economics.
    11. Stephan Klasen & Simon Lange, 2015. "Targeting Performance and Poverty Effects of Proxy Means-Tested Transfers: Trade-offs and Challenges," Ibero America Institute for Econ. Research (IAI) Discussion Papers 231, Ibero-America Institute for Economic Research.
    12. repec:dau:papers:123456789/776 is not listed on IDEAS
    13. Rodríguez, Luis C. & Pascual, Unai & Muradian, Roldan & Pazmino, Nathalie & Whitten, Stuart, 2011. "Towards a unified scheme for environmental and social protection: Learning from PES and CCT experiences in developing countries," Ecological Economics, Elsevier, vol. 70(11), pages 2163-2174, September.
    14. Christophe Muller & Sami Bibi, 2006. "Focused Targeting against Poverty Evidence from Tunisia," IDEP Working Papers 0602, Institut d'economie publique (IDEP), Marseille, France, revised Apr 2006.
    15. Zwane, Alix Peterson, 2007. "Does poverty constrain deforestation? Econometric evidence from Peru," Journal of Development Economics, Elsevier, vol. 84(1), pages 330-349, September.
    16. Han, Huawei & Gao, Qin, 2019. "Community-based welfare targeting and political elite capture: Evidence from rural China," World Development, Elsevier, vol. 115(C), pages 145-159.
    17. Krishna, Anirudh, 2007. "For Reducing Poverty Faster: Target Reasons Before People," World Development, Elsevier, vol. 35(11), pages 1947-1960, November.
    18. repec:dau:papers:123456789/4335 is not listed on IDEAS
    19. Christophe MULLER & Sami BIBI, 2008. "Focused Transfer Targeting against Poverty Evidence from Tunisia," THEMA Working Papers 2008-37, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    20. Christophe Muller & Sami Bibi, 2010. "Refining Targeting against Poverty Evidence from Tunisia," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 72(3), pages 381-410, June.
    21. repec:dau:papers:123456789/4334 is not listed on IDEAS

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