Cash Transfer Programs: The Case Of The BSM Program
From the table above, the under coverage rate is the ratio C/G and the leakage rate is B/E. Generally speaking, a low value of under coverage rate, leakage rate, inclusion error and exclusion error means that the program is well-targeted. Hoddinot (1999) also mentions that one of the factors that may lead to a high value of under coverage is lack of information about the program, while a high leakage rate is due to faulty design or implementation of the pro-gram.
In the case of cash transfer programs there are three methods used to identify targeted households. They are proxy means testing, geographic targeting and self-selection (Coady et alia. 2004). The BSM program relies on proxy means testing using expenditure as the main variable to …show more content…
Schady et alia. (2008) using randomized experiment approach found that “Bono de Desarrollo Humano” increased school enrollment about 10 percentage points for the poorest 20 percent household in Ecuador . This evidence is supported by Oosterbeek et alia.(2008), combining randomized experiment and regres-sion discontinuity approach to evaluate the same program they found that en-rollment is increasing by 10 percentage points for the first quintile household of poverty index. But, the program has a zero impact for the second quintile. The impact of cash transfer program “Bono de Desarrollo Humano” in Ecua-dor has also been analysed by Ponce and Bedi (2010). They studied the effect of a cash transfer program on cognitive achievement. Using a regression dis-continuity design they found that the program has no impact in test …show more content…
This review presented the implementation of BSM in 2009 in which they found that BSM coverage is relatively low in 2012 and there is an ineffective targeting process in terms of identification of beneficiaries. The report also noted that the BSM is not able to cover the increase in education costs when children need to transition from junior high school to senior high school. In order to determine the magnitude of mis-targeting, the report divided the observations in decile of expenditure per capita. In result, there is a still large proportion which received by the non-targeted (over decile 1). (World Bank
In the case of cash transfer programs there are three methods used to identify targeted households. They are proxy means testing, geographic targeting and self-selection (Coady et alia. 2004). The BSM program relies on proxy means testing using expenditure as the main variable to …show more content…
Schady et alia. (2008) using randomized experiment approach found that “Bono de Desarrollo Humano” increased school enrollment about 10 percentage points for the poorest 20 percent household in Ecuador . This evidence is supported by Oosterbeek et alia.(2008), combining randomized experiment and regres-sion discontinuity approach to evaluate the same program they found that en-rollment is increasing by 10 percentage points for the first quintile household of poverty index. But, the program has a zero impact for the second quintile. The impact of cash transfer program “Bono de Desarrollo Humano” in Ecua-dor has also been analysed by Ponce and Bedi (2010). They studied the effect of a cash transfer program on cognitive achievement. Using a regression dis-continuity design they found that the program has no impact in test …show more content…
This review presented the implementation of BSM in 2009 in which they found that BSM coverage is relatively low in 2012 and there is an ineffective targeting process in terms of identification of beneficiaries. The report also noted that the BSM is not able to cover the increase in education costs when children need to transition from junior high school to senior high school. In order to determine the magnitude of mis-targeting, the report divided the observations in decile of expenditure per capita. In result, there is a still large proportion which received by the non-targeted (over decile 1). (World Bank