NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Price Effects of Cash Versus In-Kind Transfers

Jesse M. Cunha, Giacomo De Giorgi, Seema Jayachandran

NBER Working Paper No. 17456
Issued in September 2011
NBER Program(s):   PE

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.

download in pdf format
   (1223 K)

email paper

This paper is available as PDF (1223 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w17456

Users who downloaded this paper also downloaded these:
Anderson, Butcher, and Schanzenbach w16873 Adequate (or Adipose?) Yearly Progress: Assessing the Effect of "No Child Left Behind" on Children's Obesity
Anderson, Butcher, Cascio, and Schanzenbach w16673 Is Being in School Better? The Impact of School on Children's BMI When Starting Age is Endogenous
Jackson and Bruegmann w15202 Teaching Students and Teaching Each Other: The Importance of Peer Learning for Teachers
Hoynes and Schanzenbach w16198 Work Incentives and the Food Stamp Program
Dynarski, Hyman, and Schanzenbach w17533 Experimental Evidence on the Effect of Childhood Investments on Postsecondary Attainment and Degree Completion
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us