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Evaluating targeted cash transfer programs: a general equilibrium framework with an application to Mexico

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  • Coady, David
  • Harris, Rebecca Lee

Abstract

This report focuses on the indirect and direct effects of transfer programs. In particular, it shows how modelling results can be combined with information from standard household surveys to provide an integrated analysis of the direct distributional impact of such programs and the indirect distributional and efficiency impacts arising from domestic financing mechanisms. This approach reflects the view that any credible poverty alleviation strategy must have a credible financing strategy underlying it, and this need for domestic financing can have important consequences for both the level and the distribution of household incomes. To illustrate the approach, the report focuses on the recent introduction in Mexico of an innovative poverty alleviation transfer program called PROGRESA, which has been used as a prototype for similar programs that have recently been implemented in other developing countries.

Suggested Citation

  • Coady, David & Harris, Rebecca Lee, 2004. "Evaluating targeted cash transfer programs: a general equilibrium framework with an application to Mexico," Research reports 137, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:resrep:137
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    References listed on IDEAS

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    1. Morley, Samuel & David Coady, 2003. "From Social Assistance to Social Development: Targeted Education Subsidies in Developing Countries," Peterson Institute Press: All Books, Peterson Institute for International Economics, number cgd376, April.
    2. Ravallion, M., 1992. "Poverty Comparisons - A Guide to Concepts and Methods," Papers 88, World Bank - Living Standards Measurement.
    3. Harris, Rebecca Lee, 1999. "The distributional impact of macroeconomic shocks in Mexico: threshold effects in a multi-region CGE model," TMD discussion papers 44, International Food Policy Research Institute (IFPRI).
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    Cited by:

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    2. Meskoub, M., 2015. "Cash transfer as a social policy instrument or a tool of adjustment policy: from indirect subsidies (to energy and utilities) to cash subsidies in Iran, 2010-2014," ISS Working Papers - General Series 610, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    3. Juan M. Villa, 2014. "Social Transfers and Growth: The Missing Evidence from Luminosity Data," WIDER Working Paper Series wp-2014-090, World Institute for Development Economic Research (UNU-WIDER).
    4. Villa, Juan M., 2014. "Social transfers and growth: The missing evidence from luminosity data," WIDER Working Paper Series 090, World Institute for Development Economic Research (UNU-WIDER).
    5. Ahmed, Vaqar & O' Donoghue, Cathal, 2008. "Welfare impact of external balance in pakistan: CGE-microsimulation analysis," MPRA Paper 9267, University Library of Munich, Germany.
    6. Juan M. Villa, 2016. "Social Transfers and Growth: Evidence from Luminosity Data," Economic Development and Cultural Change, University of Chicago Press, vol. 65(1), pages 39-61.

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