Investigate on Moral Hazard: The Impact of Cash Transfer on Household Spending Behaviour

Bintang Satrio Wibowo (), Ahmad Syahrul Fauzi, Deky Aji Suseno, Shanty Oktavilia, Fredericho Mego Sundoro, Fawwaz Jaerawibawa, Rahma Puspita Rahayu and Nur Fadhila
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Bintang Satrio Wibowo: Universitas Negeri Semarang, Department of Economics
Ahmad Syahrul Fauzi: Universitas Negeri Semarang, Department of Economics
Deky Aji Suseno: Universitas Negeri Semarang, Department of Economics
Shanty Oktavilia: Universitas Negeri Semarang, Department of Economics
Fredericho Mego Sundoro: Universitas Negeri Semarang, Department of Economics
Fawwaz Jaerawibawa: Universitas Negeri Semarang, Department of Economics
Rahma Puspita Rahayu: Universitas Negeri Semarang, Department of Economics
Nur Fadhila: Universitas Negeri Semarang, Department of Economics

A chapter in Proceedings of the International conference of Economics Business and Economics Education Science (ICE-BEES-24), 2024, pp 179-186 from Springer

Abstract: Abstract This study aims to examine the effects of cash assistance on consumption behaviour patterns in Indonesia, using the Indonesia Family Life Survey (IFLS) as the primary data source. The study also seeks to determine whether there are deviations in consumption behaviour when individuals receive cash assistance interventions. To address this, a multiple linear regression analysis using the OLS dummy variable method was employed. The results of this study reveal that cash assistance interventions have a positive impact on primary consumption and total consumption among the population. Furthermore, additional findings indicate that cash assistance also has a positive effect on tertiary consumption, such as cigarettes and alcohol. The increase in tertiary consumption suggests the presence of moral hazard among cash assistance recipients.

Keywords: Cash Assistance; Consumption Behaviour; Indonesia Family Life Survey (IFLS) (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-522-5_13

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DOI: 10.2991/978-94-6463-522-5_13

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