Considerations on Targeted vs. Universal Policy

For any given policy, what are the effects of it being targeted—applied to those cases that satisfy some eligibility criteria—or universal—to everyone? This entry lists some considerations of the comparative implications of this choice.
* Changes the signaling value: e.g. if there is social stigma to use some poverty assistance, making it available to everyone might reduce this. Or, e.g. as in Bursztyn & Jensen (2015), choosing to sign up for an SAT prep course comes with social image penalties for some students. This could be avoided and allow those students to use the SAT prep course if it would be given to all students by default, or made mandatory.
* Changes the costs
* etc. to fill.