PSCI 2106 Lecture Notes - Lecture 3: Prenatal Care, Meritocracy, Flush Toilet
Document Summary
Governments have a variety of options to reduce poverty in their country (3 main ways) Direct transfers: social safety nets. ex is disability/unemployment (payment for); these suffer from- Type 1 error (leakage)- non poor also take advantage. Type 2 error (exclusion)- some poor excluded, no free riders. Bureaucracy/admin costs (debate in us) transfers discourage work effort, have stigma associated. Conditional cash transfers: usually has an income threshold, conditional on behaviors that increase human capital accumulation/public goods. Ex are pre-natal care, vaccination, nutrition, completing/attending school. Can be difficult to narrow down target group and how to deliver funds (through mother is best) This goes off assumption the decisions people make are better or worse for society, so persuading them to choose one thing will make society better. Idea is to augment the assets of the poor to increase long run productivity. Education, malaria nets, healthcare, birth control, transportation, public restrooms, roads, irrigation, etc.
