The allocation of benefits under uncertainty: a decision-theoretic framework

Details

Serval ID
serval:BIB_F7C2DC72DDE0
Type
Article: article from journal or magazin.
Collection
Publications
Institution
Title
The allocation of benefits under uncertainty: a decision-theoretic framework
Journal
Economic Modelling
Author(s)
Abul Naga  Ramses H.
Publication state
Published
Issued date
2003
Peer-reviewed
Oui
Volume
20
Number
4
Pages
873-893
Language
english
Abstract
We consider the problem of targeting benefits when the decision-maker cannot ascertain an applicant's income, but can assign probabilities with respect to the level of his resources. A decision-theoretic framework is used to analyze the decision to grant a benefit of fixed size. The proposed rule consists in balancing the expected social cost of denying assistance to the needy (type-I error) against that of granting a benefit to a non-poor (type-II error). Thus, when the costs of type-I errors are on the rise, or those of type-II errors fall, it becomes more desirable to increase population coverage of the programme.
Keywords
Poverty Resource Allocation
Create date
19/11/2007 11:55
Last modification date
20/08/2019 17:23
Usage data