Private Information and the Allocation of Land Use Subsidies in Malawi

A-Tier
Journal: American Economic Journal: Applied Economics
Year: 2013
Volume: 5
Issue: 3
Pages: 113-35

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

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

Abstract

Efficient targeting of public programs is difficult when the cost or benefit to potential recipients is private information. This study illustrates the potential of self-selection to improve allocational outcomes in the context of a program that subsidizes tree planting in Malawi. Landholders who received a tree planting contract as a result of bidding in an auction kept significantly more trees alive over a three year period than did landholders who received the contract through a lottery. The gains from targeting on private information through the auction represent a 30 percent cost savings per surviving tree for the implementing organization.

Technical Details

RePEc Handle
repec:aea:aejapp:v:5:y:2013:i:3:p:113-35
Journal Field
General
Author Count
1
Added to Database
2026-01-25