Ravallion, Martin2012-06-082012-06-082007-11-01https://hdl.handle.net/10986/7541Policy-oriented discussions often assume that "better targeting" implies larger impacts on poverty or more cost-effective interventions. The literature on the economics of targeting warns against that assumption, but evidence has been scarce. The paper begins with a critical review of the strengths and weaknesses of the targeting measures found in practice. It then exploits an unusually large micro data set for China to estimate aggregate and local-level poverty impacts of the country's main urban antipoverty program. Standard measures of targeting are found to be uninformative, or even deceptive, about impacts on poverty and cost-effectiveness in reducing poverty. In program design and evaluation, it would be better to focus directly on the program's outcomes for poor people than to rely on prevailing measures of targeting.CC BY 3.0 IGOADMINISTRATIVE COSTSALLOCATION OF RESOURCESANTIPOVERTY PROGRAMANTIPOVERTY PROGRAMSCASH TRANSFERSCOST EFFECTIVENESSCOUNTERFACTUALDEVELOPING COUNTRIESDISABILITYECONOMIC FACTORSECONOMIC GROWTHECONOMIC OPPORTUNITIESFAMILY BENEFITSFOOD STAMPSFOOD SUBSIDIESGUARANTEED MINIMUM INCOMEHEADCOUNT INDEXHOUSEHOLD INCOMEILLNESSIMPACTS ON POVERTYIMPERFECT INFORMATIONINCOME DISTRIBUTIONINCOME GAINSINCOME SOURCESINDICATOR TARGETINGINEQUALITYINSTRUMENTAL VARIABLESINTERVENTIONINTERVENTIONSLABOR FORCELABOR SUPPLYLIVELIHOODLOCAL AUTHORITIESMEAN INCOMEMEASURES OF POVERTYMUNICIPAL AUTHORITIESNATIONAL POLICYNET INCOMENEW POORNUMBER OF PEOPLEPARTICIPATION RATESPER CAPITA INCOMEPERFECT TARGETINGPERSONAL COMMUNICATIONPOLICY ANALYSISPOLICY DISCUSSIONSPOLICY MAKERSPOLICY RESEARCHPOLICY RESEARCH WORKING PAPERPOLITICAL ECONOMYPOLITICAL ECONOMY OF TARGETINGPOLITICAL SUPPORTPOORPOOR PEOPLEPOPULATION SIZEPOVERTY ALLEVIATIONPOVERTY GAP INDEXPOVERTY IMPACTSPOVERTY INDEXPOVERTY LINEPOVERTY MEASURESPOVERTY OUTCOMESPOVERTY RATESPOVERTY REDUCTIONPOVERTY TRAPSPROGRESSPUBLIC SPENDINGREDUCING POVERTYSOCIAL ASSISTANCESOCIAL SECURITYSOCIAL WELFARESQUARED POVERTY GAPSQUARED POVERTY GAP INDEXTARGETED SOCIAL PROGRAMSTARGETINGTRANSFER PAYMENTSURBAN AREASURBAN POPULATIONURBAN POVERTYWORKFARE PROGRAMSWorld Bank10.1596/1813-9450-4385