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Title: Targeting ultra-poor households in Honduras and Peru

Author(s): Dean S. Karlan and Bram Thuysbaert

Publication Date: November 2013

Keyword(s): participatory wealth rankings, poverty targeting and proxy means tests

Programme Area(s): Development Economics

Abstract: For policy purposes, it is important to understand the relative efficacy of various methods to target the poor. Recently, participatory methods have received particular attention. We ex-amine the effectiveness of a hybrid two-step process that combines a participatory wealth ranking and a verification household survey, relative to two proxy means tests (the Progress out of Poverty Index and a housing index), in Honduras and Peru. The methods we examine perform similarly to one another by various metrics. They all target most accurately in the cases of the poorest and the wealthiest households but perform with mixed results among households in the middle of the distribution. Ultimately, given similar performance, the analysis suggests that costs should be the driving consideration in choosing across methods.

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Bibliographic Reference

Karlan, D and Thuysbaert, B. 2013. 'Targeting ultra-poor households in Honduras and Peru'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=9740