Poverty-efficient programme reforms with heterogeneous agents: the role of targeting and allocation rules

Abstract

We use the Duclos, Makdissi and Wodon (2005) decomposition of programme dominance into targeting dominance and allocation dominance curves to identify poverty-reducing programme reforms. In particular we recognise the importance of considering more than one dimension when identifying poverty-reducing policy reforms. For this purpose, we use sequential stochastic dominance methods to analyse the poverty impact of policy programme reforms, particularly the case of income transfers and commodity taxation.

Citation

Garcia-Diaz, R. (2007), "Poverty-efficient programme reforms with heterogeneous agents: the role of targeting and allocation rules", Bishop, J. and Amiel, Y. (Ed.) Inequality and Poverty (Research on Economic Inequality, Vol. 14), Emerald Group Publishing Limited, Leeds, pp. 281-300. https://doi.org/10.1016/S1049-2585(06)14013-2