Using referenda to improve targeting and decrease costs of conditional cash transfers

A-Tier
Journal: Journal of Public Economics
Year: 2019
Volume: 176
Issue: C
Pages: 179-194

Authors (3)

Alix-Garcia, Jennifer M. (not in RePEc) Sims, Katharine R.E. (Amherst College) Phaneuf, Daniel J. (not in RePEc)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Cost-effective allocation of conditional cash transfers (CCT) requires identifying recipients with low opportunity costs who might change behavior. This paper develops a low-cost approach for improving program implementation by using a stated preference, referendum-style survey question to calculate willingness to accept (WTA) for CCT contracts. We illustrate this in the context of Mexico's Payments for Ecosystem Services Program, and find that the estimated social cost based on WTA is substantially lower than actual payments. Simulation of three geographic targeting approaches shows that joint selection using deforestation risk and WTA could increase program impact under the same budget. We also simulate modified payment schedules based on predicted WTA and demonstrate that these could reduce program cost.

Technical Details

RePEc Handle
repec:eee:pubeco:v:176:y:2019:i:c:p:179-194
Journal Field
Public
Author Count
3
Added to Database
2026-01-29