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Targeting THE POOR

Finance & Development, 2018-12, Vol.55 (4), p.28

Copyright International Monetary Fund Dec 2018 ;ISSN: 0015-1947 ;EISSN: 1564-5142

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  • Title:
    Targeting THE POOR
  • Author: Hanna, Rema ; Khan, Adnan ; Olken, Benjamin
  • Subjects: Beneficiaries ; Budgets ; Developing countries ; Economic development ; Economic models ; Famine ; Households ; Identification systems ; Informal economy ; LDCs ; Middle class ; Mobile commerce ; Propensity to consume ; Public health ; Subsidies
  • Is Part Of: Finance & Development, 2018-12, Vol.55 (4), p.28
  • Description: Energy subsidies are a classic example. Since everyone can access the subsidy, it must be quite large in order to ensure that the poor get a reasonable share, and in most cases many of the benefits accrue to the middle class, not the poor. [...]spending is already so high for these subsidies that the amount governments would save by eliminating energy subsidies in emerging market and developing economies exceeds what many of them spend on public health. [...]as an additional benefit, cash transfers can be used as a fiscal stimulus to smooth negative macroeconomic shocks by distributing money directly to poor households that have a high marginal propensity to consume. [...]if poverty is temporary, proxy means testing, which targets the long-term average of past income, may allow the poor to fall through the cracks. [...]errors in targeting that do occur with proxy means tests also generate inequality among equally poor people, and limits on subsidies to the middle class can generate political strife.
  • Publisher: Washington: International Monetary Fund
  • Language: English
  • Identifier: ISSN: 0015-1947
    EISSN: 1564-5142
  • Source: AUTh Library subscriptions: ProQuest Central
    Alma/SFX Local Collection
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