Welfare Analysis of Changing Notches: Evidence from Bolsa Família

Abstract

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

Poverty and Shared Prosperity 2022: Correcting Course

“…Calculating the value of a policy using the MVPF Calculating the MVPF One calculates the marginal value of public funds (MVPF) using evidence on policies' impacts and costs, using the calculation Total benefits Net cost to government MVPF . = Predominantly applied in the United States, the concept can have arduous data requirements, especially in the context of developing economies, but it is being increasingly used (for example, Bergstrom, Dodd, and Rios 2022). Even in the absence of the full range of data and evidence needed to accurately construct the MVPF, calculating it with the best available data and evidence can still provide clarity on what drives the value of different policies and the range of likely values for some relevant policies in a given context.…”