Methodological proposal for individual targeting of social programs
By Juan Pichihua ; Jose Valderrama
July 2010
Language: Spanish
Abstract
We propose a methodology to identify recipients of social programs. First we construct a welfare index and then we define several thresholds that help identify recipients. The estimation of the index uses principal components analysis with optimal scaling. The calculation of the thresholds is based on the minimization of a function that depends on errors such as infiltration and sub coverage.