The collaborative paper "Digital Governance and Cash Transfer Payment Targeting Efficiency" by Wang Junhui, Jie Mengyin, and He Qing from the research team of Survey and Research Center for China Household Finance (CHFS) was officially published in the 4th issue of Economic Research in 2024.

Abstract

Against the backdrop of moving towards common prosperity and expanding domestic demand, the call for increasing transfer payments is growing louder. One of the main obstacles to expanding transfer payments to residents is the high targeting bias. Studying the impact of digital governance on the efficiency of cash transfer payments has important reference value for expanding transfer payments to residents. This article is based on five rounds of data from the China Household Finance Survey (CHFS) from 2013 to 2021, and uses the impact of the launch of the "Resident Household Economic Status Verification Information System" to study the impact and mechanism of the verification system on the efficiency of subsistence allowance targeting. Research has found that the verification system significantly reduces the false guarantee rate of subsistence allowances, and the verification system has high cost-effectiveness. The verification system mainly improves targeting efficiency by reducing audit costs, enhancing verification quality, and improving the fairness of the qualification recognition process. The effectiveness of the verification system is mainly reflected in rural areas, especially in remote areas, areas with strong clan power, and high population outflow rates. Due to the integration of pension information, the verification system is more effective in reducing the risk of mistaken insurance for elderly families. Although the verification system has increased the efforts to eliminate low-income families, it has not increased the exclusion of expenditure oriented impoverished families, nor has it increased the dissatisfaction caused by the elimination of low-income families. In addition, the verification system has not yet played a positive role in reducing insurance leakage. This study indicates that the verification system provides sufficient technical preparation for precise expansion of redistribution.

Author's Profile

Wang Junhui: Lecturer at CHFS, Deputy Director of the Anti Poverty Policy Laboratory, and former Associate Professor at the School of Economics and the School of Finance of Guizhou University of Finance and Economics. My main research areas are development economics and urban economics. In recent years, I have been mainly engaged in the design, implementation, and promotion of anti-poverty field experimental projects such as the "Labor Income Incentive Program" and the "Youth Education Promotion Program". The relevant research results have been published in academic journals such as Economic Research, Management World, Economics (Quarterly), and Economic Modeling in both Chinese and English, and more than ten column articles have been published on platforms such as China Social Science Network, Guangming Daily, and NetEase Research Bureau. I have led and researched over ten scientific research projects, including the National Natural Science Foundation General Project and the Sichuan Association for Science and Technology Think Tank Project. My research achievements have won honors such as the "Third Prize of Excellent Social Science Achievement Award in Hebei Province" and the "Top Ten Outstanding Papers of the Year in Management World".

Jie Mengyin: A doctoral student at RIEM SWUFE. She has previously served as an assistant researcher at CHFS and the Anti Poverty Policy Laboratory.  Her research focuses on income distribution and poverty alleviation, as well as household finance. Her research findings have been published in journals such as Economic Research, Management World, Research Management, and EMFT, and have been presented in numerous national academic conferences. Participated in multiple vertical and horizontal scientific research projects such as the National Natural Science Foundation, the National Development and Reform Commission, the Ministry of Finance, the Ministry of Agriculture and Rural Affairs, and the Provincial Association for Science and Technology. Participated in the writing of internal reference reports and received instructions from relevant leaders of the State Council. Participated in the compilation of the monograph "China's Experience in Cultivating Endogenous Motivation for Poverty Alleviation among the Poor Population". Has won honors and awards such as "School level Three Good Student" and "CITI2023 Think Tank Excellent Achievement First Prize".

He Qing: Associate Researcher and Deputy Director of  CHFS and Director of the Anti Poverty Policy Laboratory. The main research directions are family finance, income distribution, rural economy, and education economy. The research results have been published in academic journals such as Economic Research, Management World, and Economics (Quarterly). Engaged in long-term policy research on income distribution and poverty reduction, personal income tax reform, rural revitalization, etc., led or led multiple policy research projects commissioned by government departments at all levels, and submitted nearly 40 research reports to national and provincial government departments, of which more than 10 were published or approved by leaders within national ministries and commissions. The achievements have won honors such as the "Excellent Soft Science Achievement Award for Rural Revitalization of the Agriculture and Rural Department of the Central Agricultural Office" and the "Excellent Achievement Award for CTTI Think Tank". Actively participate in poverty alleviation and rural revitalization work practices, responsible for leading the design, implementation, and promotion of two anti-poverty field experiments, the "Labor Income Incentive Program" and the "Youth Education Promotion Program". Long term and in-depth participation in the questionnaire design, sampling design, and data quality control of the Chinese Household Finance Survey project, with rich experience in household sampling surveys and database construction.