By Harold Alderman
Albania presents a small quantity of social tips to almost 20% of its inhabitants via a process which permits a level of neighborhood discretion in selecting distribution. This examine investigates the poverty focusing on of this software. It shows that relative to different security web courses in low source of revenue international locations, social counsel in Albania within reason good special to the bad.
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Social assistance in Albania: decentralization and targeted transfers
Albania presents a small volume of social suggestions to almost 20% of its inhabitants via a method which permits a level of neighborhood discretion in identifying distribution. This examine investigates the poverty focusing on of this software. It shows that relative to different security internet courses in low source of revenue international locations, social tips in Albania within reason good detailed to the terrible.
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For example, there is the potential for powerful local elites to monopolize the benefits of the program. Moreover, decentralization can make it more difficult for the central government to monitor the implementation of the program, which may encourage local corruption. While this has commonly been predicted (Prud'homme, 1995), there are few studies of the relative magnitudes of local-level corruption as opposed to the diversion of public funds at the national level. Another problem associated with monitoring is the difficulty of establishing an evaluation criterion when objective functions vary across communities.
Generally, a change in pensions or state transfers is partially compensated by increased private transfers, though this is usually well less than a one for one compensation (Cox, Jimenez, and Jordan, 1995). However, if the benefits from the NE program totally substitute for private transfers and work effort, it must be assumed that households gain increased leisure as a result of receiving NE benefits while their non-resident relatives, who would have otherwise sent them money, will have higher consumption.
18Note: Dependent variable is monthly receipt of social assistance per household AugustNovember 1996. T-statistics (in parentheses) are corrected for the endogeneity of predicted expenditures, heteroskedasticity, and cluster sampling. Page 14 types of productive capital variables. 15]. The expenditure measure in column 4 is also based on expenditures net of NE. However, it also excludes the imputed services from household durables. This is regressed on the same variables as the previous measure of expenditures.