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Using a simple adverse selection model, we characterize equilibrium when the rich chase the poor. If communities are established by competitive entrepreneurs, the equilibrium exists, is unique, and is efficient. It involves either complete separation, or complete pooling. Different income groups...
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important policy research issue globally. This paper exploits a novel dataset of 20 years of municipal poverty maps and local … monetary poverty. These results provide important lessons for policy on the effects of earmarked funds to reduce territorial … poverty and inequality in terms of incentives to design formulas to distribute earmarked fiscal resources to subnational …
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We explore the relationship between connections and public transfers in decentralized poverty-targeting programmes … identify provision of information as a mechanism through which households use their connections to obtain the poverty … classification, suggesting that information campaigns may be an effective means of eliminating local level corruption in poverty …
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