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The poverty-assistance paradox

Author

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  • Janky, Béla
  • Varga, Dániel

Abstract

We present a model of preferences on welfare transfers, which incorporates the recipient’s wealth as a signal of needs and deservingness. We show that a paradox may arise: the poorer the recipient is, the less transfer he/she will get. Implications might include the negative impact of targeting assistance to the poorest on public support for welfare.

Suggested Citation

  • Janky, Béla & Varga, Dániel, 2013. "The poverty-assistance paradox," Economics Letters, Elsevier, vol. 120(3), pages 447-449.
    • Handle: RePEc:eee:ecolet:v:120:y:2013:i:3:p:447-449
    DOI: 10.1016/j.econlet.2013.06.003
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    References listed on IDEAS

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    More about this item

    Keywords

    Welfare preferences; Social preferences; Welfare transfers;
    All these keywords.

    JEL classification:

    • H8 - Public Economics - - Miscellaneous Issues
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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