Rates of return to antipoverty transfers in Uganda

Stephan Dietrich, Daniele Malerba, Armando Barrientos & Franziska Gassmann

#2017-040

A growing literature measures the impact of antipoverty transfer programmes on variables of interest among participants in low- and middle-income countries. To date, few studies provide information on net benefits or rates of return from these programmes. This paper constructs estimates of rates of return to an antipoverty transfer programme in Uganda using appropriate welfare weights. Survey and experimental methods empirically validate the range of welfare weights applied. We find that rates of return estimates applying appropriate prioritarian welfare weights are significantly higher than utilitarian rates of return.

Key words: preference for redistribution, welfare weights, cash transfers, rates of return, Uganda

JEL Classification: D61, D63, I38