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

Objectif

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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Mots‑clés

Thème(s)

Appel à propositions

FP6-2004-MOBILITY-12
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Régime de financement

IRG - Marie Curie actions-International re-integration grants

Coordinateur

NATIONAL UNIVERSITY OF IRELAND, DUBLIN
Contribution de l’UE
Aucune donnée
Coût total
Aucune donnée