Targeted Transfers in Poor Countries : Revisiting the Tradeoffs and Policy Options

Two tradeoffs have been widely seen to severely constrain the scope for attacking poverty using redistributive transfers in poor countries: an equity-efficiency tradeoff and an insurance-efficiency tradeoff. The author provides a critical overview...

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Main Author:	Ravallion, Martin
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	TARGETED ASSISTANCE TARGETED SUBSIDIES REDISTRIBUTION TRADEOFFS EQUITY OBJECTIVES RISK MANAGEMENT ADMINISTRATIVE COSTS ADVERSE EFFECTS ADVERSE IMPACT AGGREGATE GROWTH AGGREGATE OUTPUT ASSET DISTRIBUTION ASSET INEQUALITY ASYMMETRIC INFORMATION CASH TRANSFERS CHRONIC POVERTY CONSUMPTION GROWTH COUNTRY-SPECIFIC EFFECTS CREDIT MARKET CREDIT MARKET FAILURE DATA SET DECISION MAKING DEVELOPED COUNTRIES DEVELOPING COUNTRIES DIMINISHING RETURNS DROUGHT DYNAMIC PANEL ECONOMIC ACTIVITY ECONOMIC GROWTH EGS EMPIRICAL EVIDENCE EMPIRICAL RESEARCH EMPIRICAL RESULTS EMPIRICAL STUDIES EMPIRICAL SUPPORT EMPIRICAL WORK EQUITABLE DISTRIBUTION EXTERNALITIES FAMINE GROWTH PROCESS GROWTH PROSPECTS GROWTH RATE GROWTH RATES GROWTH REGRESSION HOUSEHOLD CONSUMPTION HOUSEHOLD DATA HOUSEHOLD INCOME HUMAN CAPITAL IDIOSYNCRATIC SHOCKS IMPACT OF INEQUALITY INCOME INCOME GROUPS INCOME INEQUALITY INCOME RISK INCOME SHOCKS INCOME SUPPORT INCOME TRANSFERS INCOMES INDICATOR TARGETING INEQUALITY INEQUALITY REDUCTION INFLATION INSURANCE INVESTMENT OPPORTUNITIES INVOLUNTARY UNEMPLOYMENT LABOR FORCE LAND INEQUALITY LINK BETWEEN INEQUALITY AND GROWTH LOW INCOME MARKET FAILURES MARKET IMPERFECTIONS MEAN INCOME MEANS TESTING MEANS TESTS MEASUREMENT ERRORS MEASUREMENT PROBLEMS NEGATIVE CORRELATION NEGATIVE SHOCK NUTRITIONAL STATUS POLICY CIRCLES POLICY DESIGN POLICY IMPLICATIONS POLICY INTERVENTION POLICY INTERVENTIONS POLICY MAKERS POLICY OPTIONS POLICY RESEARCH POLITICAL ECONOMY POLITICAL SUPPORT POOR POOR AREAS POOR COUNTRIES POOR GROWTH POOR PEOPLE POPULATION SHARE POVERTY INDEX POVERTY LEVELS POVERTY REDUCTION POVERTY REDUCTION OBJECTIVE POVERTY REDUCTION STRATEGY PRODUCTIVE ACTIVITY PRODUCTIVE OPPORTUNITIES PRODUCTIVITY PUBLIC SPENDING RANDOM WALK REDISTRIBUTIVE POLICIES REDISTRIBUTIVE POLICY REDUCING INEQUALITY REDUCING POVERTY RISING INEQUALITY SAFETY NETS SAVINGS SOCIAL COSTS TARGETED TRANSFERS TARGETING TARGETING MECHANISMS TAXATION THEORETICAL MODELS TRANSFER PROGRAMS UNEMPLOYMENT WAGES RISK MANAGEMENT ADMINISTRATIVE COSTS
Online Access:	http://documents.worldbank.org/curated/en/2003/05/2360829/targeted-transfers-poor-countries-revisiting-tradeoffs-policy-options http://hdl.handle.net/10986/18213

id	okr-10986-18213
recordtype	oai_dc
spelling	okr-10986-182132021-04-23T14:03:41Z Targeted Transfers in Poor Countries : Revisiting the Tradeoffs and Policy Options Ravallion, Martin TARGETED ASSISTANCE TARGETED SUBSIDIES REDISTRIBUTION TRADEOFFS EQUITY OBJECTIVES RISK MANAGEMENT ADMINISTRATIVE COSTS ADVERSE EFFECTS ADVERSE IMPACT AGGREGATE GROWTH AGGREGATE OUTPUT ASSET DISTRIBUTION ASSET INEQUALITY ASYMMETRIC INFORMATION CASH TRANSFERS CHRONIC POVERTY CONSUMPTION GROWTH COUNTRY-SPECIFIC EFFECTS CREDIT MARKET CREDIT MARKET FAILURE DATA SET DECISION MAKING DEVELOPED COUNTRIES DEVELOPING COUNTRIES DIMINISHING RETURNS DROUGHT DYNAMIC PANEL ECONOMIC ACTIVITY ECONOMIC GROWTH EGS EMPIRICAL EVIDENCE EMPIRICAL RESEARCH EMPIRICAL RESULTS EMPIRICAL STUDIES EMPIRICAL SUPPORT EMPIRICAL WORK EQUITABLE DISTRIBUTION EXTERNALITIES FAMINE GROWTH PROCESS GROWTH PROSPECTS GROWTH RATE GROWTH RATES GROWTH REGRESSION HOUSEHOLD CONSUMPTION HOUSEHOLD DATA HOUSEHOLD INCOME HUMAN CAPITAL IDIOSYNCRATIC SHOCKS IMPACT OF INEQUALITY INCOME INCOME GROUPS INCOME INEQUALITY INCOME RISK INCOME SHOCKS INCOME SUPPORT INCOME TRANSFERS INCOMES INDICATOR TARGETING INEQUALITY INEQUALITY REDUCTION INFLATION INSURANCE INVESTMENT OPPORTUNITIES INVOLUNTARY UNEMPLOYMENT LABOR FORCE LAND INEQUALITY LINK BETWEEN INEQUALITY AND GROWTH LOW INCOME MARKET FAILURES MARKET IMPERFECTIONS MEAN INCOME MEANS TESTING MEANS TESTS MEASUREMENT ERRORS MEASUREMENT PROBLEMS NEGATIVE CORRELATION NEGATIVE SHOCK NUTRITIONAL STATUS POLICY CIRCLES POLICY DESIGN POLICY IMPLICATIONS POLICY INTERVENTION POLICY INTERVENTIONS POLICY MAKERS POLICY OPTIONS POLICY RESEARCH POLITICAL ECONOMY POLITICAL SUPPORT POOR POOR AREAS POOR COUNTRIES POOR GROWTH POOR PEOPLE POPULATION SHARE POVERTY INDEX POVERTY LEVELS POVERTY REDUCTION POVERTY REDUCTION OBJECTIVE POVERTY REDUCTION STRATEGY PRODUCTIVE ACTIVITY PRODUCTIVE OPPORTUNITIES PRODUCTIVITY PUBLIC SPENDING RANDOM WALK REDISTRIBUTIVE POLICIES REDISTRIBUTIVE POLICY REDUCING INEQUALITY REDUCING POVERTY RISING INEQUALITY SAFETY NETS SAVINGS SOCIAL COSTS TARGETED TRANSFERS TARGETING TARGETING MECHANISMS TAXATION THEORETICAL MODELS TRADEOFFS TRANSFER PROGRAMS UNEMPLOYMENT WAGES RISK MANAGEMENT ADMINISTRATIVE COSTS Two tradeoffs have been widely seen to severely constrain the scope for attacking poverty using redistributive transfers in poor countries: an equity-efficiency tradeoff and an insurance-efficiency tradeoff. The author provides a critical overview of recent theoretical and empirical work that has called into question the extent of these tradeoffs in poor countries. He argues that these aggregate tradeoffs are often exaggerated. Indeed, they may not even be binding constraints in practice, given market failures. There appears to be scope for using carefully designed transfer schemes as an effective tool against both transient and chronic poverty. However, the same factors that weaken the tradeoffs also suggest that efficient redistributive policies might look rather different to the programs often found in practice. 2014-05-09T18:40:14Z 2014-05-09T18:40:14Z 2003-05 http://documents.worldbank.org/curated/en/2003/05/2360829/targeted-transfers-poor-countries-revisiting-tradeoffs-policy-options http://hdl.handle.net/10986/18213 English en_US Policy Research Working Paper;No. 3048 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	TARGETED ASSISTANCE TARGETED SUBSIDIES REDISTRIBUTION TRADEOFFS EQUITY OBJECTIVES RISK MANAGEMENT ADMINISTRATIVE COSTS ADVERSE EFFECTS ADVERSE IMPACT AGGREGATE GROWTH AGGREGATE OUTPUT ASSET DISTRIBUTION ASSET INEQUALITY ASYMMETRIC INFORMATION CASH TRANSFERS CHRONIC POVERTY CONSUMPTION GROWTH COUNTRY-SPECIFIC EFFECTS CREDIT MARKET CREDIT MARKET FAILURE DATA SET DECISION MAKING DEVELOPED COUNTRIES DEVELOPING COUNTRIES DIMINISHING RETURNS DROUGHT DYNAMIC PANEL ECONOMIC ACTIVITY ECONOMIC GROWTH EGS EMPIRICAL EVIDENCE EMPIRICAL RESEARCH EMPIRICAL RESULTS EMPIRICAL STUDIES EMPIRICAL SUPPORT EMPIRICAL WORK EQUITABLE DISTRIBUTION EXTERNALITIES FAMINE GROWTH PROCESS GROWTH PROSPECTS GROWTH RATE GROWTH RATES GROWTH REGRESSION HOUSEHOLD CONSUMPTION HOUSEHOLD DATA HOUSEHOLD INCOME HUMAN CAPITAL IDIOSYNCRATIC SHOCKS IMPACT OF INEQUALITY INCOME INCOME GROUPS INCOME INEQUALITY INCOME RISK INCOME SHOCKS INCOME SUPPORT INCOME TRANSFERS INCOMES INDICATOR TARGETING INEQUALITY INEQUALITY REDUCTION INFLATION INSURANCE INVESTMENT OPPORTUNITIES INVOLUNTARY UNEMPLOYMENT LABOR FORCE LAND INEQUALITY LINK BETWEEN INEQUALITY AND GROWTH LOW INCOME MARKET FAILURES MARKET IMPERFECTIONS MEAN INCOME MEANS TESTING MEANS TESTS MEASUREMENT ERRORS MEASUREMENT PROBLEMS NEGATIVE CORRELATION NEGATIVE SHOCK NUTRITIONAL STATUS POLICY CIRCLES POLICY DESIGN POLICY IMPLICATIONS POLICY INTERVENTION POLICY INTERVENTIONS POLICY MAKERS POLICY OPTIONS POLICY RESEARCH POLITICAL ECONOMY POLITICAL SUPPORT POOR POOR AREAS POOR COUNTRIES POOR GROWTH POOR PEOPLE POPULATION SHARE POVERTY INDEX POVERTY LEVELS POVERTY REDUCTION POVERTY REDUCTION OBJECTIVE POVERTY REDUCTION STRATEGY PRODUCTIVE ACTIVITY PRODUCTIVE OPPORTUNITIES PRODUCTIVITY PUBLIC SPENDING RANDOM WALK REDISTRIBUTIVE POLICIES REDISTRIBUTIVE POLICY REDUCING INEQUALITY REDUCING POVERTY RISING INEQUALITY SAFETY NETS SAVINGS SOCIAL COSTS TARGETED TRANSFERS TARGETING TARGETING MECHANISMS TAXATION THEORETICAL MODELS TRADEOFFS TRANSFER PROGRAMS UNEMPLOYMENT WAGES RISK MANAGEMENT ADMINISTRATIVE COSTS
spellingShingle	TARGETED ASSISTANCE TARGETED SUBSIDIES REDISTRIBUTION TRADEOFFS EQUITY OBJECTIVES RISK MANAGEMENT ADMINISTRATIVE COSTS ADVERSE EFFECTS ADVERSE IMPACT AGGREGATE GROWTH AGGREGATE OUTPUT ASSET DISTRIBUTION ASSET INEQUALITY ASYMMETRIC INFORMATION CASH TRANSFERS CHRONIC POVERTY CONSUMPTION GROWTH COUNTRY-SPECIFIC EFFECTS CREDIT MARKET CREDIT MARKET FAILURE DATA SET DECISION MAKING DEVELOPED COUNTRIES DEVELOPING COUNTRIES DIMINISHING RETURNS DROUGHT DYNAMIC PANEL ECONOMIC ACTIVITY ECONOMIC GROWTH EGS EMPIRICAL EVIDENCE EMPIRICAL RESEARCH EMPIRICAL RESULTS EMPIRICAL STUDIES EMPIRICAL SUPPORT EMPIRICAL WORK EQUITABLE DISTRIBUTION EXTERNALITIES FAMINE GROWTH PROCESS GROWTH PROSPECTS GROWTH RATE GROWTH RATES GROWTH REGRESSION HOUSEHOLD CONSUMPTION HOUSEHOLD DATA HOUSEHOLD INCOME HUMAN CAPITAL IDIOSYNCRATIC SHOCKS IMPACT OF INEQUALITY INCOME INCOME GROUPS INCOME INEQUALITY INCOME RISK INCOME SHOCKS INCOME SUPPORT INCOME TRANSFERS INCOMES INDICATOR TARGETING INEQUALITY INEQUALITY REDUCTION INFLATION INSURANCE INVESTMENT OPPORTUNITIES INVOLUNTARY UNEMPLOYMENT LABOR FORCE LAND INEQUALITY LINK BETWEEN INEQUALITY AND GROWTH LOW INCOME MARKET FAILURES MARKET IMPERFECTIONS MEAN INCOME MEANS TESTING MEANS TESTS MEASUREMENT ERRORS MEASUREMENT PROBLEMS NEGATIVE CORRELATION NEGATIVE SHOCK NUTRITIONAL STATUS POLICY CIRCLES POLICY DESIGN POLICY IMPLICATIONS POLICY INTERVENTION POLICY INTERVENTIONS POLICY MAKERS POLICY OPTIONS POLICY RESEARCH POLITICAL ECONOMY POLITICAL SUPPORT POOR POOR AREAS POOR COUNTRIES POOR GROWTH POOR PEOPLE POPULATION SHARE POVERTY INDEX POVERTY LEVELS POVERTY REDUCTION POVERTY REDUCTION OBJECTIVE POVERTY REDUCTION STRATEGY PRODUCTIVE ACTIVITY PRODUCTIVE OPPORTUNITIES PRODUCTIVITY PUBLIC SPENDING RANDOM WALK REDISTRIBUTIVE POLICIES REDISTRIBUTIVE POLICY REDUCING INEQUALITY REDUCING POVERTY RISING INEQUALITY SAFETY NETS SAVINGS SOCIAL COSTS TARGETED TRANSFERS TARGETING TARGETING MECHANISMS TAXATION THEORETICAL MODELS TRADEOFFS TRANSFER PROGRAMS UNEMPLOYMENT WAGES RISK MANAGEMENT ADMINISTRATIVE COSTS Ravallion, Martin Targeted Transfers in Poor Countries : Revisiting the Tradeoffs and Policy Options
relation	Policy Research Working Paper;No. 3048
description	Two tradeoffs have been widely seen to severely constrain the scope for attacking poverty using redistributive transfers in poor countries: an equity-efficiency tradeoff and an insurance-efficiency tradeoff. The author provides a critical overview of recent theoretical and empirical work that has called into question the extent of these tradeoffs in poor countries. He argues that these aggregate tradeoffs are often exaggerated. Indeed, they may not even be binding constraints in practice, given market failures. There appears to be scope for using carefully designed transfer schemes as an effective tool against both transient and chronic poverty. However, the same factors that weaken the tradeoffs also suggest that efficient redistributive policies might look rather different to the programs often found in practice.
format	Publications & Research :: Policy Research Working Paper
author	Ravallion, Martin
author_facet	Ravallion, Martin
author_sort	Ravallion, Martin
title	Targeted Transfers in Poor Countries : Revisiting the Tradeoffs and Policy Options
title_short	Targeted Transfers in Poor Countries : Revisiting the Tradeoffs and Policy Options
title_full	Targeted Transfers in Poor Countries : Revisiting the Tradeoffs and Policy Options
title_fullStr	Targeted Transfers in Poor Countries : Revisiting the Tradeoffs and Policy Options
title_full_unstemmed	Targeted Transfers in Poor Countries : Revisiting the Tradeoffs and Policy Options
title_sort	targeted transfers in poor countries : revisiting the tradeoffs and policy options
publisher	World Bank, Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2003/05/2360829/targeted-transfers-poor-countries-revisiting-tradeoffs-policy-options http://hdl.handle.net/10986/18213
_version_	1764439148440059904

Targeted Transfers in Poor Countries : Revisiting the Tradeoffs and Policy Options

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