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Poverty Targeting Through Public Goods

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  • Anders Kjelsrud
  • Rohini Somanathan

Abstract

In national accounts, government expenditures are used to measure the value of public spending. These expenditures grossly overestimate the value of services received by Indian households because the public education and health sectors are characterized by high salaries, absenteeism, corruption and multiple other inefficiencies. The low quality of public services is reflected in rising private school enrolment and sizable out-of-pocket health expenditures. Twenty-five per cent of children in rural India attend private schools despite their modest means. An alternative approach is used to estimate the value of public in-kind transfers in which benefits from publicly provided goods are estimated using household willingness to pay for comparable private alternatives. [CDE Working Paper No. 271].

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  • Anders Kjelsrud & Rohini Somanathan, 2017. "Poverty Targeting Through Public Goods," Working Papers id:11643, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:11643
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    References listed on IDEAS

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    1. Bhaskar Dutta & Bharat Ramaswami, 2004. "Reforming Food Subsidy Schemes: Estimating the Gains from Self‐targeting in India," Review of Development Economics, Wiley Blackwell, vol. 8(2), pages 309-324, May.
    2. Banerjee, Abhijit & Somanathan, Rohini, 2007. "The political economy of public goods: Some evidence from India," Journal of Development Economics, Elsevier, vol. 82(2), pages 287-314, March.
    3. Jean Drèze & Reetika Khera, 2013. "Rural Poverty And The Public Distribution System," Working papers 235, Centre for Development Economics, Delhi School of Economics.
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    Cited by:

    1. Anand Sahasranaman & Henrik Jeldtoft Jensen, 2021. "Dynamics of reallocation within India’s income distribution," Indian Economic Review, Springer, vol. 56(1), pages 1-23, June.
    2. Anders Kjelsrud, 2022. "To adjust or not to adjust? Spatial price variation and the measurement of poverty," Scandinavian Journal of Economics, Wiley Blackwell, vol. 124(3), pages 773-796, July.
    3. Anand Sahasranaman, 2020. "Long term dynamics of poverty transitions in India," Papers 2010.06954, arXiv.org.
    4. Pawde, Balu & Shaw, Tara Shankar & Trivedi, Pushpa L, 2022. "Household Consumption Expenditure Inequality in Rural India: 1993-94 to 2011-12," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 57(11).
    5. Debopam Bhattacharya & Anders Kjelsrud & Rohini Somanathan, 2021. "Estimating the Welfare Gains from Public Schools in Rural India," Sankhya B: The Indian Journal of Statistics, Springer;Indian Statistical Institute, vol. 83(2), pages 430-443, November.

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