TY - GEN AU - Vera-Cossio, Diego A. AU - Hoffmann, Bridget AU - Vargas, David AU - Beuermann, Diether AU - Stampini, Marco TI - Research Insights: Can Dynamic Targeting Mechanisms Improve the Social Value of Safety Nets? PY - 2024 Y1 - 2024/06/07 DO - 10.18235/0013011 AB - Traditional proxy-means tests approaches to selecting beneficiaries of social programs can exhibit higher levels of exclusion errors when income fluctuates. These errors can erode the social value of a safety net. Expanding the coverage of the safety net reduces exclusion errors but entails either larger budgets or substantial reduction of benefits. A dynamic targeting approach that includes updated information on labor market and other shocks can reduce targeting errors and increase the social value of the safety net at a substantially lower cost, relative to an expansion of the safety net. UR - https://doi.org/10.18235/0013011 ER -