Indian Basic Income Adrien Fabre cole Normale Suprieure, Paris - PowerPoint PPT Presentation

Pros and Cons Empirical Evidence Budget Capacity Introduction Technical Feasibility Conclusion Indian Basic Income Adrien Fabre École Normale Supérieure, Paris School of Economics, Columbia University 04/2017 Adrien Fabre Indian Basic Income

Pros and Cons Empirical Evidence Budget Capacity Introduction Technical Feasibility Conclusion Contents Pros and Cons 1 Empirical Evidence 2 Budget Capacity 3 Technical Feasibility 4 Adrien Fabre Indian Basic Income

Pros and Cons Empirical Evidence Budget Capacity Introduction Technical Feasibility Conclusion Figure: Population living with less than $1.25 a day in India Adrien Fabre Indian Basic Income

Pros and Cons Empirical Evidence Arguments For a BI Budget Capacity Arguments Against a BI Technical Feasibility Conclusion Poverty reduction: nutrition, health, education, women empowerment Dignity: enhance responsibility, as opposed to paternalism No exclusion error: no one left behind Administrative efficiency: no corruption Adrien Fabre Indian Basic Income

Pros and Cons Empirical Evidence Arguments For a BI Budget Capacity Arguments Against a BI Technical Feasibility Conclusion Unfounded: Conspicuous spending Decrease labor supply Founded: Budgetary conflict Political economy of exit Market risks Technical infrastructure Adrien Fabre Indian Basic Income

Pros and Cons Empirical Evidence Targeting of Existing Schemes Budget Capacity Outcomes of Cash Transfer Experiments Technical Feasibility Behavioral Responses Conclusion Issues measurability identification patronage leakage cost Adrien Fabre Indian Basic Income

Pros and Cons Empirical Evidence Targeting of Existing Schemes Budget Capacity Outcomes of Cash Transfer Experiments Technical Feasibility Behavioral Responses Conclusion Resource mis-allocation Adrien Fabre Indian Basic Income

Pros and Cons Empirical Evidence Targeting of Existing Schemes Budget Capacity Outcomes of Cash Transfer Experiments Technical Feasibility Behavioral Responses Conclusion Replacing food subsidy by cash: experiment in Delhi Adrien Fabre Indian Basic Income

Pros and Cons Empirical Evidence Targeting of Existing Schemes Budget Capacity Outcomes of Cash Transfer Experiments Technical Feasibility Behavioral Responses Conclusion Testing the BI: experiment in Madhya Pradesh Adrien Fabre Indian Basic Income

Pros and Cons Empirical Evidence Targeting of Existing Schemes Budget Capacity Outcomes of Cash Transfer Experiments Technical Feasibility Behavioral Responses Conclusion Testing the BI: experiment in Madhya Pradesh Adrien Fabre Indian Basic Income

Pros and Cons Empirical Evidence Targeting of Existing Schemes Budget Capacity Outcomes of Cash Transfer Experiments Technical Feasibility Behavioral Responses Conclusion Testing the BI: experiment in Madhya Pradesh Adrien Fabre Indian Basic Income

Pros and Cons Empirical Evidence Targeting of Existing Schemes Budget Capacity Outcomes of Cash Transfer Experiments Technical Feasibility Behavioral Responses Conclusion Testing the BI: experiment in Madhya Pradesh Adrien Fabre Indian Basic Income

Pros and Cons Empirical Evidence Targeting of Existing Schemes Budget Capacity Outcomes of Cash Transfer Experiments Technical Feasibility Behavioral Responses Conclusion 32% higher odds of working more hours for the recipients of the BI in Madhya Pradesh, similar findings in other experiments (non-negative effect on labor supply) No increase in consumption of temptation goods in any experiment Adrien Fabre Indian Basic Income

Pros and Cons Empirical Evidence Existing programs Budget Capacity Poverty Alleviation by Cost Technical Feasibility Conclusion Adrien Fabre Indian Basic Income

Pros and Cons Empirical Evidence Existing programs Budget Capacity Poverty Alleviation by Cost Technical Feasibility Conclusion Adrien Fabre Indian Basic Income

Pros and Cons Empirical Evidence Budget Capacity Technical Feasibility Conclusion Almost all adults have an Aadhaar number But Aadhaar presents a lot of identification errors: it is not working so well Also, only 40% have a bank account (2013) Adrien Fabre Indian Basic Income

Pros and Cons Empirical Evidence Budget Capacity Technical Feasibility Conclusion A great idea whose time will come (RDV in 10 years?) Adrien Fabre Indian Basic Income