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Cash Transfers, Food Prices, and Nutrition Impacts on Ineligible Children

Deon Filmer, Jed Friedman, Eeshani Kandpal and Junko Onishi
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Jed Friedman: World Bank
Eeshani Kandpal: World Bank
Junko Onishi: World Bank

The Review of Economics and Statistics, 2023, vol. 105, issue 2, 327-343

Abstract: Can cash aid harm nonrecipients by raising local prices? We show that a household-targeted cash transfer in the Philippines increases the prices of perishable foods in some markets and raises stunting among nonbeneficiary children by 11 percentage points (34%). Impacts increase in the size of the village income shock and remoteness---and are sustained two and a half years after program introduction. Price effects from an experimental sample are confirmed with national expenditure surveys collected during program scale-up. Household-targeted cash transfers can thus generate local spillovers that undermine program goals. Selected geographic targeting may avoid price spillovers at moderate additional cost.

Date: 2023
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The Review of Economics and Statistics is currently edited by Pierre Azoulay, Olivier Coibion, Will Dobbie, Raymond Fisman, Benjamin R. Handel, Brian A. Jacob, Kareen Rozen, Xiaoxia Shi, Tavneet Suri and Yi Xu

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