What is meant by the Coady et al.(2004)study that found that 25% of transfer programs were regressive?
A) A larger share of the program benefits went to poor rather than non -poor
B) The fees charged went up as the participants use more of the program
C) A larger share of the program benefits went to non-poor rather than the poor
D) The fees charged to private households for the transfer programs decreases as the program is used.

Question

Quizplus · Accepted Answer

The study found that 25% of transfer programs were regressive, meaning that a larger share of the program benefits went to non-poor rather than the poor. Option A is incorrect because it describes a progressive program. Option B is incorrect because it describes a program with increasing marginal rates, which is not necessarily regressive. Option D is incorrect because it describes a program with decreasing marginal rates, which is also not necessarily regressive.

What Is Meant by the Coady Et Al