{
  "title": "Evaluating Alternative Approaches to Poverty Alleviation: Rice Tariffs Versus Targeted Transfers in Madagascar",
  "publication": "IMF Working Papers, January 1, 2008",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/evaluating-alternative-approaches-to-poverty-alleviation-rice-tariffs-versus-targeted-21548",
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  "summary": "This paper uses a partial equilibrium framework to evaluate the relative efficiency, distributional and revenue implications of rice tariffs and targeted transfers in Madagascar, especially in the context of identifying their respective roles for poverty alleviation.",
  "sections": [
    {
      "heading": "Summary and objective",
      "content": "- Uses a partial equilibrium framework to evaluate the relative efficiency, distributional, and revenue implications of rice tariffs and targeted transfers in Madagascar, with a focus on their roles for poverty alleviation.\n- Concludes that although tariff reductions generate substantial efficiency gains, those gains accrue mainly to higher income households.\n- Identifies that poor net rice sellers will lose from lower tariffs.\n- Argues that well designed and implemented targeted direct transfers to poor households are likely to be a substantially more costeffective approach to poverty alleviation.\n- Recommends financing such targeted transfers by switching revenue raising from rice tariffs to more efficient tax instruments.\n- Notes that these policy conclusions are likely to be robust to the incorporation of general equilibrium considerations."
    },
    {
      "heading": "Key findings (efficiency, distribution, revenue)",
      "content": "- Tariff reductions:\n  - Likely to produce substantial efficiency gains.\n  - Efficiency gains accrue mainly to higher income households.\n  - Lower tariffs harm poor net rice sellers.\n- Targeted direct transfers:\n  - More costeffective for poverty alleviation compared with rice tariff policy.\n  - When well designed and implemented, targeted transfers better protect poor households.\n- Revenue implications:\n  - Financing targeted transfers should involve moving revenue raising away from rice tariffs and toward more efficient tax instruments."
    },
    {
      "heading": "Policy recommendations",
      "content": "- Develop and implement a system of well designed and implemented targeted direct transfers to poor households.\n- Finance targeted transfers by switching revenue raising from rice tariffs to more efficient tax instruments.\n- Consider that the main policy conclusions are likely robust even when general equilibrium effects are incorporated."
    },
    {
      "heading": "Methodology note",
      "content": "- Analytical framework: partial equilibrium model applied to rice tariffs and targeted transfers in Madagascar.\n- Focus on relative efficiency, distributional impacts, and revenue effects.\n- Authors note robustness of conclusions to general equilibrium considerations.\n\n---\n\n Content in this bundle\n\n- Wp0809\n  - Wp0809 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Wp0809 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/evaluating-alternative-approaches-to-poverty-alleviation-rice-tariffs-versus-targeted-21548"
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    "Authors: Paul A. Dorosh, David Coady, Bart Minten",
    "Published: January 1, 2008",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451868715.001",
    "Uses a partial equilibrium framework to evaluate the relative efficiency, distributional, and revenue implications of rice tariffs and targeted transfers in Madagascar, with a focus on their roles for poverty alleviation.",
    "Concludes that although tariff reductions generate substantial efficiency gains, those gains accrue mainly to higher income households.",
    "Identifies that poor net rice sellers will lose from lower tariffs.",
    "Argues that well designed and implemented targeted direct transfers to poor households are likely to be a substantially more costeffective approach to poverty alleviation.",
    "Recommends financing such targeted transfers by switching revenue raising from rice tariffs to more efficient tax instruments.",
    "Notes that these policy conclusions are likely to be robust to the incorporation of general equilibrium considerations.",
    "Tariff reductions:",
    "Targeted direct transfers:",
    "Revenue implications:",
    "Develop and implement a system of well designed and implemented targeted direct transfers to poor households.",
    "Finance targeted transfers by switching revenue raising from rice tariffs to more efficient tax instruments.",
    "Consider that the main policy conclusions are likely robust even when general equilibrium effects are incorporated.",
    "Analytical framework: partial equilibrium model applied to rice tariffs and targeted transfers in Madagascar.",
    "Focus on relative efficiency, distributional impacts, and revenue effects.",
    "Authors note robustness of conclusions to general equilibrium considerations.",
    "**Wp0809**"
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