Author
Listed:
- Donni Olivier
(THEMA, Universite de Cergy-Pontoise)
- Bargain Olivier
(University College of Dublin, CHILD and IZA)
AbstractWe examine the relative merits of targeting children within the household through price subsidies and cash transfers. To do so, we model the behavior of a household composed of one adult and one child. We then show that 'favorable' distortions from price subsidies may allow redistributing toward the child and then derive the conditions under which this redistributive scheme is more efficient than cash trans- fers. The framework is extended to account for possible paternalistic preferences of the social planner and for households composed of two adults with different preferences. Applied to a continuum of households, our approach is extended to the problem of child poverty alleviation. In contrast to the traditional view, we show that well-chosen subsidies may be more cost effective than cash transfers in reducing child poverty.
Suggested Citation
Donni Olivier & Bargain Olivier, 2011.
"Targeting and Child Poverty,"
THEMA Working Papers
2011-05, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
Handle:
RePEc:ema:worpap:2011-05
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- Transfers to mothers may hurt children
by Economic Logician in Economic Logic on 2011-05-19 19:39:00
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"The Measurement of Child Costs: A Rothbarth-Type Method Consistent with Scale Economies,"
IZA Discussion Papers
4654, Institute of Labor Economics (IZA).
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- Donni Olivier & Bargain Olivier, 2011.
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IZA Discussion Papers
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LISER Working Paper Series
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