The Principles of Targeting

Abstract

The question of how to design policies to effectively alleviate poverty is one of great practical significance. In nineteenth century England, J. S. Mill succinctly characterised the problem as one of giving the greatest amount of needful help with the smallest amount of undue reliance upon it. This characterisation fits well with the dilemma faced by modern day policy-makers. It is important to use available resources efficiently: this means directing them as much as possible towards those who need them most. This is the basic idea which motivates discussion about targeting.

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