Attention Economy


Friday, June 5, 2015

Evidence Based Economics and Poverty Reduction

An interesting essay in WSJ: The Anti-Poverty Experiment

Related:
Several prominent development economists (Abhijit Banerjee, Esther Duflo and others) have published a new research article in the journal Science:
A multifaceted program causes lasting progress for the very poor: Evidence from six countries
Authors: Abhijit Banerjee, Esther Duflo, Nathanael Goldberg, Dean Karlan, Robert Osei, William Parienté, Jeremy Shapiro, Bram Thuysbaert, and Christopher Udry 
Science 15 May 2015: 348 (6236)
ABSTRACT
“We present results from six randomized control trials of an integrated approach to improve livelihoods among the very poor. The approach combines the transfer of a productive asset with consumption support, training, and coaching plus savings encouragement and health education and/or services. Results from the implementation of the same basic program, adapted to a wide variety of geographic and institutional contexts and with multiple implementing partners, show statistically significant cost-effective impacts on consumption (fueled mostly by increases in self-employment income) and psychosocial status of the targeted households. The impact on the poor households lasted at least a year after all implementation ended. It is possible to make sustainable improvements in the economic status of the poor with a relatively short-term intervention.”