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Heterogeneous impacts of cash transfers on farm profitability. Evidence from a randomised study in Lesotho

Author

Listed:
  • Ervin Prifti
  • Silvio Daidone
  • Noemi Pace
  • Benjamin Davis

Abstract

We estimate the average treatment effect (ATE) of cash transfers on farm profitability by exploiting a randomised control trial for the evaluation Lesotho’s biggest transfer program. We also explore impact heterogeneity by unpacking the ATE into group-specific parameters. We estimate conditional average treatment effects to describe how treatment effects vary with selected covariates and quantile treatment effects to illustrate the variability of effects at different outcome levels. We find that the program had sizable impacts on farm profitability, but these impacts are spread unevenly in the population. The program benefited more those with greater productive potential and had strong distributional impacts.

Suggested Citation

  • Ervin Prifti & Silvio Daidone & Noemi Pace & Benjamin Davis, 2020. "Heterogeneous impacts of cash transfers on farm profitability. Evidence from a randomised study in Lesotho," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 47(4), pages 1531-1558.
    • Handle: RePEc:oup:erevae:v:47:y:2020:i:4:p:1531-1558.
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    File URL: http://hdl.handle.net/10.1093/erae/jbz050
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    Cited by:

    1. Xing Ji & Jingwen Xu & Hongxiao Zhang, 2022. "How Does China’s New Rural Pension Scheme Affect Agricultural Production?," Agriculture, MDPI, vol. 12(8), pages 1-23, July.
    2. Scognamillo, Antonio & Mastrorillo, Marina & Ignaciuk, Ada, 2022. "Reducing vulnerability to weather shocks through social protection – Evidence from the implementation of Productive Safety Net Programme (PSNP) in Ethiopia," ESA Working Papers 324074, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    3. Pace, Noemi & Sebastian, Ashwini & Daidone, Silvio & Dela O Campos, Ana Paula & Prifti, Ervin & Davis, Benjamin, 2022. "Cash transfers’ role in improving livelihood diversification strategies and well-being: short- and medium-term evidence from Zimbabwe," World Development, Elsevier, vol. 154(C).

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