From protection to production: The productive impacts of cash transfers and health insurance in Ghana

Martin Paul Tabe-Ojong and Emmanuel Nshakira Rukundo

No 1102, Ruhr Economic Papers from RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen

Abstract: We study the productive and psychological effects of LEAP 1000, a program integrating cash transfer and health insurance in Ghana. We assess impacts on livestock ownership and commercialisation, household investments (including savings) and time preferences as a measure of behavioural changes. Using a two-wave panel and applying difference-in-differences estimations, we find that the program significantly increased livestock ownership, especially small ruminant animals, and commercialisation. There are positive effects on households' investments in durable goods, starting businesses and reduction of food expenditure as a share of household budgets. Further examination of potential mechanisms reveals improvements in patience, increased future orientation, sense of happiness and social support. Additional triple difference regressions confirm that these behavioural changes contribute to program effectiveness.

Keywords: Cash transfers; health insurance; household investments; future orientations; Ghana (search for similar items in EconPapers)
JEL-codes: I13 I15 I18 J01 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:rwirep:311186

DOI: 10.4419/96973280

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