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Budgetary Rules for Poverty Alleviation
Department of Economics, University of Essex.
1986 (English)Report (Other academic)
Abstract [en]

If direct verficiation of low incomes on a case by case basis is too costly, then to some extent the allocation of a poverty alleviation budget will have to be directed towards broadly defined groups in the population. There is then a leakage of expenditure to those above the poverty line. The object of this paper is to formulate precisely the problem of optimal direction of a poverty alleviation budget towards thesee broadly defined groups, taking into account the leakages involved. using a recently suggested decomposable class of poverty indices the paper shows that the budgetary rules so derived have surprising and intricate features, and simple guidelines on budgetary stance towards a group, such a favoring disproportionately groups with greater poverty, turn out to be misleading.

Place, publisher, year, edition, pages
Stockholm: IIES , 1986. , 19 p.
Seminar Paper / Institute for International Economic Studies, Stockholm University, ISSN 0347-8769 ; 363
National Category
URN: urn:nbn:se:su:diva-41544OAI: diva2:331117
Published in connection with a visit at the IIES.Available from: 2010-07-21 Created: 2010-07-21 Last updated: 2010-07-21

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