Targeting Maps : An Asset-Based Approach to Geographic Targeting

Proper targeting of policy interventions requires reasonable estimates of the benefits of the alternative options. To inform such decisions, we develop an integrated approach that estimates the marginal returns to a range of assets across geographically defined sub-populations allowing returns to vary by household and location. We then create a series of maps illustrating the spatial distribution of estimated marginal benefits from increased holdings of a specific asset. These maps can then be overlaid with traditional poverty maps to identify areas that are strong candidates for a particular development intervention. In this paper, we develop a general method and demonstrate its potential with an application using Ugandan data. Although prospective endogeneity bias in estimated marginal returns is unavoidable, targeting maps deliver useful information that is consistent with recent empirical findings and fill an important void in current policy analysis tool kits