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The freedom to choose: theory and quasi-experimental evidence on cash transfer restrictions

Abstract:

Should cash transfer programmes restrict consumer choice? For example, should food assistance delivered in cash be restricted to food and exclude temptation goods? Theoretically, if transfers are extra-marginal, restrictions induce (1) a substitution effect away from restricted goods and (2) a negative wealth effect if transfer recipients resell unrestricted goods at a loss to access restricted goods. The welfare impact on transfer recipients is negative. We test and corroborate these predict...

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Publication status:
Published

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Institution:
University of Oxford
Division:
SSD
Department:
International Development
Role:
Author
More by this author
Institution:
University of Oxford
Division:
SSD
Department:
International Development
Role:
Author
More by this author
Institution:
University of Oxford
Division:
SSD
Department:
International Development
Role:
Author
Publisher:
Centre for the Study of African Economies Publisher's website
Article number:
WPS/2021-14
Series:
CSAE Working Paper Series
Publication date:
2021-10-20
Paper number:
WPS/2021-14
Language:
English
Keywords:
Pubs id:
1204262
Local pid:
pubs:1204262
Deposit date:
2021-10-20

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