Are the welfare losses from imperfect targeting important?

The authors evaluate the size of the welfare losses from using alternative “imperfect” welfare indicators as substitutes for the conventionally preferred consumption indicator. They find that whereas the undercoverage and leakage welfare indices always suggest substantial losses, and the poverty ind...

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Autores principales: Skoufias, Emmanuel, Coady, David
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2002
Materias:
Acceso en línea:https://hdl.handle.net/10568/158121
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author Skoufias, Emmanuel
Coady, David
author_browse Coady, David
Skoufias, Emmanuel
author_facet Skoufias, Emmanuel
Coady, David
author_sort Skoufias, Emmanuel
collection Repository of Agricultural Research Outputs (CGSpace)
description The authors evaluate the size of the welfare losses from using alternative “imperfect” welfare indicators as substitutes for the conventionally preferred consumption indicator. They find that whereas the undercoverage and leakage welfare indices always suggest substantial losses, and the poverty indices suggest substantial losses for the worst performing indices, their preferred welfare index based on standard welfare theory suggests much smaller welfare losses. They also find that one cannot reject the hypothesis that the welfare losses associated with using the better performing alternative indicators are zero. In the case of their preferred welfare index, this reflects the fact that most of the targeting errors, i.e., exclusion and inclusion errors, are highly concentrated around the poverty line so that the differences in welfare weights between those receiving and not receiving the transfers are insufficient to make a difference to the overall welfare impact.
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spelling CGSpace1581212025-11-06T06:41:20Z Are the welfare losses from imperfect targeting important? Skoufias, Emmanuel Coady, David welfare economics poverty consumption The authors evaluate the size of the welfare losses from using alternative “imperfect” welfare indicators as substitutes for the conventionally preferred consumption indicator. They find that whereas the undercoverage and leakage welfare indices always suggest substantial losses, and the poverty indices suggest substantial losses for the worst performing indices, their preferred welfare index based on standard welfare theory suggests much smaller welfare losses. They also find that one cannot reject the hypothesis that the welfare losses associated with using the better performing alternative indicators are zero. In the case of their preferred welfare index, this reflects the fact that most of the targeting errors, i.e., exclusion and inclusion errors, are highly concentrated around the poverty line so that the differences in welfare weights between those receiving and not receiving the transfers are insufficient to make a difference to the overall welfare impact. 2002 2024-10-24T12:54:02Z 2024-10-24T12:54:02Z Working Paper https://hdl.handle.net/10568/158121 en Open Access application/pdf International Food Policy Research Institute Skoufias, Emmanuel; Coady, David. 2002. Are the welfare losses from imperfect targeting important? FCND Discussion Paper 125. https://hdl.handle.net/10568/158121
spellingShingle welfare economics
poverty
consumption
Skoufias, Emmanuel
Coady, David
Are the welfare losses from imperfect targeting important?
title Are the welfare losses from imperfect targeting important?
title_full Are the welfare losses from imperfect targeting important?
title_fullStr Are the welfare losses from imperfect targeting important?
title_full_unstemmed Are the welfare losses from imperfect targeting important?
title_short Are the welfare losses from imperfect targeting important?
title_sort are the welfare losses from imperfect targeting important
topic welfare economics
poverty
consumption
url https://hdl.handle.net/10568/158121
work_keys_str_mv AT skoufiasemmanuel arethewelfarelossesfromimperfecttargetingimportant
AT coadydavid arethewelfarelossesfromimperfecttargetingimportant