Targeting Disaster Aid in Post-Tsunami Sri Lanka

In this article we examine the allocation of boats and houses, the two major types of aid made available to tsunami-affected fishery households in Sri Lanka. We investigate the effectiveness of targeting by looking at the distributional impacts and the determinants of allocation of these transfers at the household level. We find that houses were much better targeted than boats in terms of compensating for the losses due to the tsunami. We also find that the ex post distribution of boats is much more unequal than the distribution that prevailed before the tsunami. The reverse is true for the distribution of houses, for which the government took a much more active role.