 Conditional cash transfers and education quality in the presence of credit constraintsElena Del Rey and Fernanda Estevan Economics of Education Review, 2013, vol. 34, issue C, 76-84 Abstract: We investigate the relative merits of unconditional cash transfers (UCT), conditional cash transfers (CCT), and the effects of improvements in education quality on efficiency and welfare. In our setting, some parents underinvest in their children's education because capital market imperfections prevent them from borrowing. Under sufficiently accurate targeting, CCT are more effective than UCT in enhancing the efficiency of these households’ decisions. However, UCT is superior to CCT in terms of welfare unless targeting is perfect, in which case UCT and CCT are equivalent. Education quality is welfare improving, but may not be efficiency enhancing when public education quality is very low. Keywords: Conditional cash transfers; Public education; Education quality; Unconditional cash transfers; Credit constraint; Efficiency; Welfare (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecoedu:v:34:y:2013:i:c:p:76-84 DOI: 10.1016/j.econedurev.2013.01.006 Access Statistics for this article Economics of Education Review is currently edited by E. Cohn More articles in Economics of Education Review from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.