Means Testing versus Universal Provision in Poverty Alleviation Programmes

This paper contrasts the use of means-tested and universal schemes in the alleviation of poverty. Using a class of poverty measures, the authors illustrate the trade-off from the fact that means testing is costly to both the government and the claimant, while universal provision entails a leakage to the nonpoor. The paper provides numerical, as well as analytical, results. Copyright 1990 by The London School of Economics and Political Science.