How much do our neighbors really know? The limits of community-based targeting

Social assistance programs in developing countries often rely on local community members to identify potential beneficiaries. As community members may observe neighbors’ welfare, their reports may capture transitory shocks better than the proxies typically observable by a centralized policy implemen...

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Detalles Bibliográficos
Autores principales: Trachtman, Carly, Permana, Yudistira Hendra, Sahadewo, Gumilang Aryo
Formato: Journal Article
Lenguaje:Inglés
Publicado: Elsevier 2026
Materias:
Acceso en línea:https://hdl.handle.net/10568/175627
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author Trachtman, Carly
Permana, Yudistira Hendra
Sahadewo, Gumilang Aryo
author_browse Permana, Yudistira Hendra
Sahadewo, Gumilang Aryo
Trachtman, Carly
author_facet Trachtman, Carly
Permana, Yudistira Hendra
Sahadewo, Gumilang Aryo
author_sort Trachtman, Carly
collection Repository of Agricultural Research Outputs (CGSpace)
description Social assistance programs in developing countries often rely on local community members to identify potential beneficiaries. As community members may observe neighbors’ welfare, their reports may capture transitory shocks better than the proxies typically observable by a centralized policy implementer. To test this, we conduct a lab-style experiment in Central Java, in which participants rank other community members’ welfare, using benchmarks that vary in sensitivity to transitory shocks, and target small cash transfers. We find little evidence that community-held welfare information better reflects transitory shocks and find that targeting decisions mostly depend on perceived differences in overall wealth. JEL Codes: O12, I32, D83
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spelling CGSpace1756272025-10-26T13:02:36Z How much do our neighbors really know? The limits of community-based targeting Trachtman, Carly Permana, Yudistira Hendra Sahadewo, Gumilang Aryo community development policy innovation poverty targeting Social assistance programs in developing countries often rely on local community members to identify potential beneficiaries. As community members may observe neighbors’ welfare, their reports may capture transitory shocks better than the proxies typically observable by a centralized policy implementer. To test this, we conduct a lab-style experiment in Central Java, in which participants rank other community members’ welfare, using benchmarks that vary in sensitivity to transitory shocks, and target small cash transfers. We find little evidence that community-held welfare information better reflects transitory shocks and find that targeting decisions mostly depend on perceived differences in overall wealth. JEL Codes: O12, I32, D83 2026-01 2025-07-14T15:44:29Z 2025-07-14T15:44:29Z Journal Article https://hdl.handle.net/10568/175627 en Open Access Elsevier Trachtman, Carly; Permana, Yudistira Hendra; and Sahadewo, Gumilang Aryo. 2025. How much do our neighbors really know? The limits of community-based targeting. Journal of Development Economics 178(January 2026): 103555. https://doi.org/10.1016/j.jdeveco.2025.103555
spellingShingle community development
policy innovation
poverty
targeting
Trachtman, Carly
Permana, Yudistira Hendra
Sahadewo, Gumilang Aryo
How much do our neighbors really know? The limits of community-based targeting
title How much do our neighbors really know? The limits of community-based targeting
title_full How much do our neighbors really know? The limits of community-based targeting
title_fullStr How much do our neighbors really know? The limits of community-based targeting
title_full_unstemmed How much do our neighbors really know? The limits of community-based targeting
title_short How much do our neighbors really know? The limits of community-based targeting
title_sort how much do our neighbors really know the limits of community based targeting
topic community development
policy innovation
poverty
targeting
url https://hdl.handle.net/10568/175627
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