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Content archived on 2024-06-16

Assessing the impact of public transfers on consumption inequality and welfare: evidence from a randomized experiment

Objective

One very important issue in the design of a public intervention to alleviate poverty is that of the interaction between the proposed program and the existing private insurance arrangements among the households targeted by the public scheme. We study the impact of a public transfers program on income volatility, private transfers and consumption inequality in an economy where the individuals are subject to income risk and debt constraints. We take advantage of the unique experimental design adopted in the implementation of the Progresa program in Mexico. We exploit the randomized nature of the sample to estimate the key structural parameters and validate our theoretical model. We then use the estimated model to evaluate the effect of counterfactual policy experiments on private risk-sharing and welfare. The methodology and the techniques developed in this context can be adopted in the evaluation of alternative programs for poverty alleviation, insurance, education subsidies and virtually any public intervention.

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Keywords

Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)

Topic(s)

Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.

Call for proposal

Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.

FP6-2004-MOBILITY-12
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Funding Scheme

Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.

IRG - Marie Curie actions-International re-integration grants

Coordinator

NATIONAL UNIVERSITY OF IRELAND, DUBLIN
EU contribution
No data
Total cost

The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.

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