The Distributional Consequences of Group Procurement : Evidence from a Randomized Trial of a Food Security Program in Rural India

Public transfer programs that allow beneficiaries to choose the transferred good may be more efficient, but the poorest beneficiaries may not participate if the good chosen is too costly. A model shows that program targeting and consumption impacts...

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Bibliographic Details
Main Author:	Christian, Paul
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2016
Subjects:	FOOD NEEDS SUBSTITUTION FOOD CONSUMPTION PATTERNS UTILITY FUNCTIONS FEEDBACK FOOD CONSUMPTION INCOME AGRICULTURAL PRODUCTION SHG MARGINAL COST INTEREST RATE PROGRAMS TYING DISTRIBUTION OF INCOME WELFARE IMPACTS INDIVIDUAL HOUSEHOLDS DISTRIBUTION AGRICULTURAL ECONOMICS VARIABLES SUBSIDY PRICE CORRUPTION QUALITY WEALTH INFLATION CHANGE IN CONSUMPTION PRICE VARIATION CHOICE MAIZE TOTAL EXPENDITURE INTERVENTION COOKING TOTAL CONSUMPTION SURPLUS INTEREST RATES CRITERIA DEBT MARKETS NUTRITIVE VALUE INDICATORS RESEARCH PRODUCT PRICE SUBSIDIES UTILITY HOUSEHOLD WEALTH GRAINS FOOD AID SUBSIDIES MARKET PRICE EXPENDITURE NORMAL GOOD INFERIOR GOODS GENERAL EQUILIBRIUM CONSUMPTION STAPLE FOODS BUDGET CONSTRAINT GOOD FOOD SECURITY SUBSTITUTE ECONOMETRIC ANALYSIS PROGRAM EVALUATION CONTROL GROUPS MARKET PRICES PARTICIPATION VALUE CREDIT SURPLUS VALUE DEMAND UTILITY FUNCTION CONSUMER PRICE EXPENDITURES CONSUMERS MEASUREMENT MARKET FOOD TRANSFERS FOOD SURVEYS FUNCTIONAL FORMS FOOD INSECURITY TARGETING FOOD SUBSIDIES FOOD ASSISTANCE PROGRAMS CAP GOODS THEORY WEALTHY HOUSEHOLDS EVALUATION STATISTICS HOUSEHOLDS POVERTY SELF HELP GROUPS SUPPLY PURCHASING INCIDENCE OF POVERTY REDUCTION IN CONSUMPTION WHEAT DISTRIBUTION OF WEALTH RICE HOUSEHOLD EXPENDITURES LIVELIHOODS WHOLESALERS CONSUMPTION LEVELS OUTCOMES HOUSEHOLD DEBT FOODS MARGINAL UTILITY EXPENDITURE DISTRIBUTION CONSUMPTION INCREASES MARGINAL UTILITY OF CONSUMPTION HOUSEHOLD EXPENDITURE FOOD SUBSIDY PRICES PARTICIPATION RATES STORAGE
Online Access:	http://documents.worldbank.org/curated/en/2016/06/26500182/distributional-consequences-group-procurement-evidence-randomized-trial-food-security-program-rural-india http://hdl.handle.net/10986/24785

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Summary:	Public transfer programs that allow beneficiaries to choose the transferred good may be more efficient, but the poorest beneficiaries may not participate if the good chosen is too costly. A model shows that program targeting and consumption impacts are tied to selected quality of the provided good. Evidence from a randomized trial in rural India in which groups of beneficiaries choose the variety of rice to be offered as a subsidized loan confirms that choosing lower cost goods self-targets the program towards the poorest beneficiaries. Consumption impacts are biggest for wealthiest households and may be negative for moderately poor households.

The Distributional Consequences of Group Procurement : Evidence from a Randomized Trial of a Food Security Program in Rural India

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