Targeting Outcomes Redux

Abstract

This paper addresses the contested issue of the efficacy of targeting interventions in developing countries using a newly constructed comprehensive database of 111 targeted antipoverty interventions in 47 countries. While the median program transfers 25 percent more to the target group than would be the case with a universal allocation, more than a quarter of targeted programs are regressive. Countries with higher income or governance measures, and countries with better measures for voice do better at directing benefits toward poorer members of the population. Interventions that use means testing, geographic targeting, and self-selection based on a work requirement are all associated with an increased share of benefits going to the bottom two quintiles. Self-selection based on consumption, demographic targeting to the elderly, and community bidding show limited potential for good targeting. Proxy means testing, community-based selection of individuals, and demographic targeting to children show good results on average, but with considerable variation. Overall, there is considerable variation in targeting performance when we examine experiences with specific program types and specific targeting methods. Indeed a Theil decomposition of the variation in outcome shows that differences between targeting methods account for only 20 percent of overall variation. The remainder is due to differences found within categories. Thus, while these general patterns are instructive, differences in implementation are also quite important determinants of outcomes.

The heterogeneous impact of conditional cash transfers

“…5 However, it is important to note that our main findings of treatment heterogeneity are based on a feature of the original stratified design, addressing concerns about potentially arbitrary subgroup analysis using experimental data (Deaton, 2010). Collectively, the results highlight the importance of carefully choosing proxy indicators to identify and target the poor (Coady et al, 2004;Alatas et al, 2012;and De Wachter and Galiani, 2006).…”

Microeconomic aspects of government subsidies in the agricultural market

“…Several studies have been devoted to assessing the targeting performance of a wide range of programs in the developing and transition economies (e.g. Baker and Grosh 1994; Subbarao et al 1997;Braithwaite et al 2000;Coady et al 2004). In such a case, different tools for this analysis should be used (e.g.…”

Dynamic Consistency of Multidimensional and Income Targeting: An Application for Mexico Using Panel Data Information

“…This approach requires the existence of verifiable records, such as pay stubs, or income and property tax records. It also requires the administrative capacity to process this information and continually update it in a timely manner (Coady, Grosh and Hoddinott, 2002). When this capacity is missing, other targeting mechanisms need to be used.…”