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Building a targeting system for Bangladesh based on proxy means testing

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  • Sharif, Iffath A.

Abstract

This paper develops and discusses a Proxy Means Test (PMT) based household targeting system for Bangladesh. The PMT model derived from household survey data includes observable and verifiable characteristics on: (i) household demographics and characteristics of household head; (ii) ownership of assets; (iii) housing quality, and access to facilities and remittances; and (iv) location variables in a formal algorithm to proxy household welfare. Simulations of the model suggest that the proposed PMT formula is able to improve the targeting efficiency a considerable amount when compared to existing targeted safety net programs. However, numerous implementation challenges remain which include but are not limited to a cost-efficient data collection process, effective management of information and a feasible and cost-efficient monitoring and verification system to minimize fraud and leakage.

Suggested Citation

  • Sharif, Iffath A., 2009. "Building a targeting system for Bangladesh based on proxy means testing," Social Protection Discussion Papers and Notes 50670, The World Bank.
    • Handle: RePEc:wbk:hdnspu:50670
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    References listed on IDEAS

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    1. World Bank, 2008. "Poverty Assessment for Bangladesh," World Bank Publications - Reports 28239, The World Bank Group.
    2. World Bank, 2002. "Sri Lanka : Poverty Assessment," World Bank Publications - Reports 15387, The World Bank Group.
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    Cited by:

    1. Ferre, Celine & Sharif, Iffath, 2014. "Can conditional cash transfers improve education and nutrition outcomes for poor children in Bangladesh ? evidence from a pilot project," Policy Research Working Paper Series 7077, The World Bank.
    2. Brown, Caitlin & Ravallion, Martin & van de Walle, Dominique, 2018. "A poor means test? Econometric targeting in Africa," Journal of Development Economics, Elsevier, vol. 134(C), pages 109-124.
    3. Stoeffler, Quentin & Mills, Bradford & del Ninno, Carlo, 2016. "Reaching the Poor: Cash Transfer Program Targeting in Cameroon," World Development, Elsevier, vol. 83(C), pages 244-263.
    4. Jehu-Appiah, Caroline & Aryeetey, Genevieve & Spaan, Ernst & Agyepong, Irene & Baltussen, Rob, 2010. "Efficiency, equity and feasibility of strategies to identify the poor: An application to premium exemptions under National Health Insurance in Ghana," Health Policy, Elsevier, vol. 95(2-3), pages 166-173, May.

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