EconPapers    
Economics at your fingertips  
 

Investing Cash Transfers to Raise Long-Term Living Standards

Paul Gertler (), Sebastian Martinez and Marta Rubio-Codina

American Economic Journal: Applied Economics, 2012, vol. 4, issue 1, pages 164-92

Abstract: Using data from a randomized experiment, we find that poor rural Mexican households invested part of their cash transfers from the Oportunidades program in productive assets, increasing agricultural income by almost 10 percent after 18 months of benefits. We estimate that for each peso transferred, households consume 74 cents and invest the rest, permanently increasing long-term consumption by about 1.6 cents. Results suggest that cash transfers can achieve long-term increases in consumption through investment in productive activities, thereby permitting beneficiary households to attain higher living standards that are sustained even after transitioning off the program. (JEL D14, H23, I38, O12)

JEL-codes: D14 H23 I38 O12 (search for similar items in EconPapers)
Date: 2012
Note: DOI: 10.1257/app.4.1.164
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (14) Track citations by RSS feed

Downloads: (external link)
http://www.aeaweb.org/articles.php?doi=10.1257/app.4.1.164 (application/pdf)
http://www.aeaweb.org/aej/app/data/2010-0343_data.zip (application/zip)
http://www.aeaweb.org/aej/app/app/2010-0343_app.pdf (application/pdf)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
Working Paper: Investing cash transfers to raise long term living standards (2006) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:aea:aejapp:v:4:y:2012:i:1:p:164-92

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/subscribe.html

Access Statistics for this article

American Economic Journal: Applied Economics is currently edited by Esther Duflo

More articles in American Economic Journal: Applied Economics from American Economic Association
Contact information at EDIRC.
Series data maintained by Jane Voros ().

 
Page updated 2014-10-14
Handle: RePEc:aea:aejapp:v:4:y:2012:i:1:p:164-92