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Indirect Effects of an Aid Program: How Do Cash Transfers Affect Ineligibles' Consumption?
Abstract
Cash transfers to eligible households indirectly increase the consumption of ineligible households living in the same villages. This effect operates through insurance and credit markets: ineligible households benefit from the transfers by receiving more gifts and loans and by reducing their savings. Thus, the transfers benefit the local economy at large; looking only at the effect on the treated underestimates their impact. One should analyze the effects of this class of programs on the entire local economy, rather than on the treated only, and use a village-level randomization, rather than selecting treatment nd control subjects from the same community. (JEL H23, I38, O12, O15)
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Rosenzweig, M. R., & Wolpin, K. I. (1993) · Journal of Political Economy · doi:10.1086/261874 · Cited by 1,179
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Labor Markets and Poverty in Village Economies*
Bandiera, O., Burgess, R., Das, N., Gulesci, S., Rasul, I., & Sulaiman, M. (2017) · The Quarterly Journal of Economics · doi:10.1093/qje/qjx003 · Cited by 347
Labor Market Effects of Social Programs: Evidence from India's Employment Guarantee
Imbert, C., & Papp, J. (2015) · American Economic Journal: Applied Economics · doi:10.1257/app.20130401 · Cited by 317
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‘The ecological footprint of poverty alleviation: evidence from Mexico’s oportunidades program’
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Metadata
- Authors
- Angelucci, M., & De Giorgi, G.
- Venue
- American Economic Review
- Publisher
- American Economic Association
- Published
- 2009-02-01
- Volume
- 99
- Issue
- 1
- Pages
- 486-508
- ISSN
- 0002-8282 (ISSN-L)
- OpenAlex
- W1973105630
- Cited by
- 533
- References
- 1
- FWCI
- 76.23
- Type
- journal article
- Language
- en
- Open access
- closed
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