Budgetary Rules for Poverty Alleviation

• 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.

Ämnesord

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Economics (hsv//eng)

Nyckelord

Economics

Nationalekonomi

Publikations- och innehållstyp

vet (ämneskategori)

rap (ämneskategori)