Social Networks in Aid Allocation: A Comparative Analysis of Social Welfare Open Access

Abstract

I develop and assess a social welfare program targeting plan that incorporates network spillover effects. I compare it to traditional capacity and deprivation-based targeting methods. I analyze how spillover targeting affects aid distribution, program effectiveness among beneficiaries, and overall economic well-being and social cohesion of the community. The findings reveal that the overlap in recipient selection between spillover targeting and either of the traditional methods is significantly smaller than the overlap between the two traditional methods. Additionally, spillover targeting improves program effectiveness among beneficiaries compared to traditional methods. Furthermore, spillover targeting enhances the overall economic well-being and social cohesion of the community more than other targeting strategies. This research highlights the importance of incorporating network spillover effects into financial aid strategies and provides a framework for integrating network considerations into aid distribution policies.

Table of Contents

Introduction

Analysis

Estimation

Data

Conclusion

Appendix

About this Honors Thesis

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School	Emory College
Department	Economics
Degree	B.A.
Submission	Honors Thesis
Language	English
Research Field	Economics, General
Keyword	Network Spillover Effects Causal Inference Targeting Policy Design Social Welfare Analysis
Committee Chair / Thesis Advisor	Stephen O'Connell, Emory University
Committee Members	Teddy Kim, Emory University Florian Gunsilius, Emory University

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