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The Price Effects of Cash Versus In-Kind Transfers

Jesse Cunha, Giacomo De Giorgi and Seema Jayachandran

No 17456, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper compares how cash and in-kind transfers affect local prices. Both types of transfers increase the demand for normal goods, but only in-kind transfers also increase supply. Hence, in-kind transfers should lead to lower prices than cash transfers, which helps consumers at the expense of local producers. We test and confirm this prediction using a program in Mexico that randomly assigned villages to receive boxes of food (trucked into the village), equivalently-valued cash transfers, or no transfers. The pecuniary benefit to consumers of in-kind transfers, relative to cash transfers, equals 11% of the direct transfer.

JEL-codes: H4 O12 (search for similar items in EconPapers)
Date: 2011-09
New Economics Papers: this item is included in nep-agr and nep-mkt
Note: PE
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Citations: View citations in EconPapers (40)

Published as Jesse M Cunha & Giacomo De Giorgi & Seema Jayachandran, 2019. "The Price Effects of Cash Versus In-Kind Transfers," The Review of Economic Studies, vol 86(1), pages 240-281.

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Journal Article: The Price Effects of Cash Versus In-Kind Transfers (2019) Downloads
Working Paper: The price effects of cash versus in-kind transfers (2015) Downloads
Working Paper: The Price Effects of Cash Versus In-Kind Transfers (2011) Downloads
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