Evaluating the impact of an innovative anti-poverty program: evidence using the generalized synthetic control method

ABSTRACT

This article estimates the causal effect of an anti-poverty mechanism dating to early this century called ‘Funds to Combat Poverty’ (Fundos de Combate à Pobreza - FCP) on the proportion of households below the poverty line in the states of Brazil’s Northeast region. We applied the generalized synthetic control method to evaluate this policy, not yet widely examined in the literature on strategies to counteract poverty. The results provide evidence of a positive impact of the policy on reducing poverty.

KEYWORDS:

• Combat poverty
• synthetic control
• Brazil
• state fund to combat poverty

JEL CLASSIFICATION:

• C13
• 132

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

¹ Institute for Applied Economic Research (IPEA).

² Details of the results are available upon request.

Additional information

Funding

This study was supported by the Ceará State Foundation to Support Scientific and Technological Development (FUNCAP).