Page 115 - Contributed Paper Session (CPS) - Volume 7

CPS2043 Adnan Dawood K. B. et al.

Enhancing the efficiency of the Proxy Mean Test
Formula (PMTF) in targeting the poorest of the
poor households
Adnan Dawood Khaleel Badran, Hanan Ali Mohamed Al Marzouqi, Eid
Mohamed Al Qubaisi, Aysha Ali Al-Hosani
Statistics Centre-Abu Dhabi, Abu Dhabi, United Arab Emirates

Abstract
All targeting methods have the same goal to correctly and efficiently identify
which households are eligible for benefit or which are not. There are six
targeting mechanisms (Tools) available worldwide for Social Safety Net
Programs (SSNP). The first is the Means Testing: this tool uses income as a
source of family welfare and is used in developed countries where income is
verified through special agencies, such as Tax Departments, Social
Security…etc. The second is the Categorical Targeting: where eligibility is
determined by age, gender, or some other demographic characteristics such
as: Disability, aged members living alone, widowed. The third method is the
Geographic Targeting: eligibility for benefits is determined, at least partly, by
location of residence. The geographic method could be used as first stage in
combination with other methods, the smaller the unit used the more accurate
(sub-districts vs. districts or districts vs. provinces) and it is more viable for
community goods and services. The fourth method is the Community-Based
Targeting: A community leader or group of community members decides who
in the community should receive benefits, like use existing local actor (teacher,
nurse, and clergyman) or civic committee to identify beneficiaries and
amounts, local actor may have best information, but personal relationships
may lead to inequitable distribution. The fifth is the Self-Targeting: the good,
or service are available for all and who ever think that he is poor, can benefit
and get this good or service. The sixth method is the Proxy Means Testing
Formula (PMTF): PMTF aims to predict household expenditure based on a
number of easily observable characteristics (independent variables/
characteristics). Weights are determined for each characteristic that are found
to be related to the household expenditure level; no need to measure the
household income or expenditure.
The PMTF is a statistical method used to predict the income/ expenditure of a
household based on observable characteristics that correlate with, but are
easier to measure, than income/ expenditure. Measuring these variables from
the households who are nominated for benefits is more credible than the
measurement of income or expenditure. The suggested variables/ observable
characteristics are related to the family welfare level and these are related to:
geographic location of the household (geographic location of the household’s

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