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Questions and Answers
What is indicated by a lower PMT score in this study?
Which database was utilized to determine program eligibility?
What was the average amount received by targeted households in the program mentioned?
What estimation strategy is represented by 'y' in the analysis?
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What does the strategy involving 'voucher' represent in the estimation model?
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What does 'PMT' stand for in the context of the program evaluation?
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What type of program was compared to the voucher program in terms of poverty reduction?
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What type of data was collected in the SUSENAS survey for this study?
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What was the primary change made to the Indonesian anti-poverty program in 2017?
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What does the electronic voucher program specifically allow beneficiaries to purchase?
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Which of the following was NOT mentioned as a challenge for the in-kind program?
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How many households were targeted as beneficiaries in the Rastra program?
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What was the budget allocated for the Rastra program monthly?
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What are the potential effects of the in-kind food assistance program according to the theory presented?
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What was the total population of the districts included in the randomization study?
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Which of the following is a feature of the voucher program as per the content?
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What was the primary outcome for poorer voucher households compared to those receiving in-kind benefits?
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How did voucher household consumption of eggs compare to in-kind households?
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What administrative advantage does the voucher program have over in-kind programs?
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What characterizes the distribution of in-kind benefits in comparison to vouchers?
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What was the effect of voucher programs on the overall poverty rate for the poorest households?
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What was a concern regarding small price increases in rural areas due to the voucher program?
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What percentage of voucher households was less likely to receive benefits compared to in-kind households?
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Which aspect of aid distribution was highlighted as being managed differently in the voucher program?
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What does the Kuznets ratio measure?
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In a Lorenz curve, what does the horizontal axis represent?
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Which principle states that the measure of income inequality is not dependent on who has the higher income?
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What does a Gini coefficient value of 0 indicate?
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What does the Total Poverty Gap (TPG) measure?
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According to the Kuznets’s Inverted-U hypothesis, what happens to income distribution as economic growth progresses?
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The Lorenz Criterion indicates that when one curve lies above another, what can be inferred?
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What does the Normalized Poverty Gap (NPG) represent?
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Study Notes
Electronic Food Vouchers in Indonesia: A Study
- The Indonesian government replaced the in-kind food assistance program, Rastra, with the electronic voucher program, Non-Cash Food Aid, in 2017.
- The researchers used randomization in the program reform to analyze the effectiveness of both programs.
- The in-kind program involved distributing 10kg of free rice per month to 15 million households.
- The electronic voucher program used debit cards for buying rice and eggs at designated shops.
- The voucher program had a budget of $1.5 billion USD, similar to the in-kind program.
- The researchers analyzed household data from the SUSENAS National Survey and the government's Unified Targeting Database.
- The study used 105 districts with a population of 53 million and 3.4 million beneficiaries for the analysis.
- Key findings indicate voucher recipients received 85% more subsidy value compared to in-kind recipients.
- Poorer voucher households received 46% more benefits compared to in-kind, resulting in a 4.6 percentage point decrease in poverty for the poorest 15% of households.
- Although poorer voucher households were less likely to receive benefits than in-kind households, the higher benefit amount for those who did receive vouchers led to a significant reduction in poverty among the poorest households.
- The difference in benefit amounts between programs is attributed to the indivisible nature of vouchers compared to the divisible in-kind benefits.
- The study highlights the efficiency and effectiveness of the voucher program in reducing poverty and suggests that voucher programs can be a valuable tool for poverty reduction.
Measuring Inequality: A Framework
- The Lorenz Curve is used to visualize income inequality, plotting cumulative income share against cumulative population share.
- Perfect equality occurs when all individuals have the same income.
- The Gini Coefficient measures the area between the Lorenz Curve and the line of perfect equality, representing the degree of inequality in a society.
- The Gini Coefficient ranges from 0 (perfect equality) to 1 (complete inequality).
- The Kuznets’s Inverted-U hypothesis suggests that income inequality worsens during the early stages of economic growth and then improves in later stages.
Measuring Absolute Poverty: Focus on Income
- Income Poverty refers to people lacking sufficient resources to meet basic needs.
- The headcount, H, refers to the number of people below the poverty line.
- The Total Poverty Gap (TPG) measures the total income required to bring everyone below the poverty line up to it.
- The Average Poverty Gap (APG) calculates the average amount of income needed to reach the poverty line for individuals below it.
- The Normalized Poverty Gap (NPG) measures the total poverty gap relative to total income, providing a standardized measure of poverty.
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Description
This quiz explores the transition from Indonesia's in-kind food assistance program to the electronic voucher system implemented in 2017. It delves into the effectiveness of both programs, highlighting key findings concerning household subsidies and benefits. Assess your knowledge on the impacts of these reforms and their implications for beneficiaries.
