This paper introduces a new methodology to target direct transfers against poverty. Our method is based on estimation … methods that focus on the poor. Using data from Tunisia, we estimate ‘focused’ transfer schemes that highly improve anti-poverty … targeting performances. Post-transfer poverty can be substantially reduced with the new estimation method. In terms of P2, the …

we show that the plausible policy decision depend on parameters describing the balance between poverty and program … exclusion risk. In the Tunisian case, only a much larger weight put on poverty relatively to exclusion could bring the decision …