Targeting Methods for Transfers

Of the commonly used methods for directing transfers to the poor, there is little consensus about which is best. Policymakers need to know how effective different targeting mechanisms are, how the effectiveness differs by method and type of program...

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Main Authors: Grosh, Margaret, Coady, David, Hoddinott, John
Format: Brief
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2003/01/6240272/targeting-methods-transfers
http://hdl.handle.net/10986/11817
id okr-10986-11817
recordtype oai_dc
spelling okr-10986-118172021-04-23T14:02:57Z Targeting Methods for Transfers Grosh, Margaret Coady, David Hoddinott, John ADMINISTRATIVE COSTS GEOGRAPHIC TARGETING INCOME INEQUALITY INTERVENTIONS MEANS TESTING METHODS OF ANALYSIS POOR PRICE SUBSIDIES REGRESSION ANALYSIS SAFETY NET PROGRAMS SOCIAL FUNDS SOCIAL SAFETY NETS TARGETING TARGETING MECHANISMS Of the commonly used methods for directing transfers to the poor, there is little consensus about which is best. Policymakers need to know how effective different targeting mechanisms are, how the effectiveness differs by method and type of program, and the implications. Targeting success can be partially captured by one outcome indicator, the share of benefits going to the bottom 40 per cent of the population. For example, if a program delivers 60 per cent of its benefits to this group, the outcome indicator is (60 divided by 40 =) 1.5. The higher the indicator - i.e., the greater the percentage of benefits going to the poor relative to their population share - the more progressive is the targeting. The authors calculate their indicator for 85 of the programs in the database. The full study provides information on the use of targeting techniques, summary statistics on comparative program performance, and regression analysis to examine the correlations between methods and outcomes. The study drew broad conclusions, subject to the limitations described beforehand, suggesting that "Targeting can work, but it doesn't always. There is no clearly preferred method for all types of programs, or all country contexts. A weak ranking of outcomes achieved by different mechanisms was possible. And, implementation matters tremendously to outcomes". Targeting performance improved with country income levels, the extent to which governments are held accountable for their actions, and the degree of inequality. 2012-08-13T16:06:23Z 2012-08-13T16:06:23Z 2003-01 http://documents.worldbank.org/curated/en/2003/01/6240272/targeting-methods-transfers http://hdl.handle.net/10986/11817 English Social Safety Nets Primer Notes; No. 10 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Brief Publications & Research Africa
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ADMINISTRATIVE COSTS
GEOGRAPHIC TARGETING
INCOME
INEQUALITY
INTERVENTIONS
MEANS TESTING
METHODS OF ANALYSIS
POOR
PRICE SUBSIDIES
REGRESSION ANALYSIS
SAFETY NET PROGRAMS
SOCIAL FUNDS
SOCIAL SAFETY NETS
TARGETING
TARGETING MECHANISMS
spellingShingle ADMINISTRATIVE COSTS
GEOGRAPHIC TARGETING
INCOME
INEQUALITY
INTERVENTIONS
MEANS TESTING
METHODS OF ANALYSIS
POOR
PRICE SUBSIDIES
REGRESSION ANALYSIS
SAFETY NET PROGRAMS
SOCIAL FUNDS
SOCIAL SAFETY NETS
TARGETING
TARGETING MECHANISMS
Grosh, Margaret
Coady, David
Hoddinott, John
Targeting Methods for Transfers
geographic_facet Africa
relation Social Safety Nets Primer Notes; No. 10
description Of the commonly used methods for directing transfers to the poor, there is little consensus about which is best. Policymakers need to know how effective different targeting mechanisms are, how the effectiveness differs by method and type of program, and the implications. Targeting success can be partially captured by one outcome indicator, the share of benefits going to the bottom 40 per cent of the population. For example, if a program delivers 60 per cent of its benefits to this group, the outcome indicator is (60 divided by 40 =) 1.5. The higher the indicator - i.e., the greater the percentage of benefits going to the poor relative to their population share - the more progressive is the targeting. The authors calculate their indicator for 85 of the programs in the database. The full study provides information on the use of targeting techniques, summary statistics on comparative program performance, and regression analysis to examine the correlations between methods and outcomes. The study drew broad conclusions, subject to the limitations described beforehand, suggesting that "Targeting can work, but it doesn't always. There is no clearly preferred method for all types of programs, or all country contexts. A weak ranking of outcomes achieved by different mechanisms was possible. And, implementation matters tremendously to outcomes". Targeting performance improved with country income levels, the extent to which governments are held accountable for their actions, and the degree of inequality.
format Publications & Research :: Brief
author Grosh, Margaret
Coady, David
Hoddinott, John
author_facet Grosh, Margaret
Coady, David
Hoddinott, John
author_sort Grosh, Margaret
title Targeting Methods for Transfers
title_short Targeting Methods for Transfers
title_full Targeting Methods for Transfers
title_fullStr Targeting Methods for Transfers
title_full_unstemmed Targeting Methods for Transfers
title_sort targeting methods for transfers
publisher World Bank, Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2003/01/6240272/targeting-methods-transfers
http://hdl.handle.net/10986/11817
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