Spillover Effects of Transfer Programs

Travis Baseler, Jules Gazeaud and Erik Snowberg

No 35681, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We derive four facts from experiments on the spillover effects of cash and in-kind transfer programs onto non-recipients: (1) average spillovers on consumption and asset value are negligible; (2) negative psychological spillovers emerge in the longer term among households randomly excluded from transfers by within-village lotteries; (3) these spillovers are concentrated in consumption-poor households; and (4) they do not appear when the selection of transfer recipients is eligibility-based. These findings are consistent with household preferences against within-village randomization of transfers, and point to additional benefits of cluster-level randomized designs over household-level ones.

JEL-codes: C93 D62 F35 I31 (search for similar items in EconPapers)
Date: 2026-08
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