CONSUMPTION AND POVERTY - HOW EFFECTIVE ARE IN-KIND TRANSFERS

The ability of in-kind transfers to alleviate poverty depends on accur ate targeting as well as recipients' valuations of the benefits. Using data from the Consumer Expenditure Surveys, the efficiency of in-kind transfers is examined in a microsimulation framework in which recipie nts are identified as those who have the lowest consumption. In this f ramework, in-kind transfers of food, capital services (which includes housing) and consumer services, are an effective. means of providing s upport to the poor even at high levels of subsidisation. The multiple good transfers that are considered are essentially equivalent to cash grants.