Cash vs In-Kind Transfers: Indian Data Meets Theory

Reetika Khera

No 325, IEG Working Papers from Institute of Economic Growth

Abstract: This paper uses qualitative and quantitative data from a survey of over 1,200 rural households in nine Indian states, along with secondary data, to shed light on the arguments for and against cash and in-kind (in this case, food) transfers. Respondents were asked to think about, argue, and ‘choose’ between the two options. Overall, two-thirds of the respondents expressed a preference for food. Some of the arguments respondents make in favour of their choices echo existing theory (e.g., paternalism, fungibility) while others are not necessarily discussed in existing theoretical work (e.g., self-control, transition costs). The quantitative analysis also highlights the context specificity of what is the appropriate form of government intervention. In that sense, this paper contributes to the growing evidence that the answer to such policy choices ultimately depends on the context.

Keywords: Cash transfers; in-kind transfers; India; South Asia (search for similar items in EconPapers)
JEL-codes: B41 H53 I38 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2013
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Published as Institute of Economic Growth, Delhi, 2013, pages 1-40

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Journal Article: Cash vs. in-kind transfers: Indian data meets theory (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:awe:wpaper:325

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