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Cash Transfers, Food Prices, and Nutrition Impacts on Ineligible Children

Author

Listed:
  • Deon Filmer

    (World Bank)

  • Jed Friedman

    (World Bank)

  • Eeshani Kandpal

    (World Bank)

  • Junko Onishi

    (World Bank)

Abstract

Can cash aid harm nonrecipients by raising local prices? We show that a household-targeted cash transfer in the Philippines increases the prices of perishable foods in some markets and raises stunting among nonbeneficiary children by 11 percentage points (34%). Impacts increase in the size of the village income shock and remoteness---and are sustained two and a half years after program introduction. Price effects from an experimental sample are confirmed with national expenditure surveys collected during program scale-up. Household-targeted cash transfers can thus generate local spillovers that undermine program goals. Selected geographic targeting may avoid price spillovers at moderate additional cost.

Suggested Citation

  • Deon Filmer & Jed Friedman & Eeshani Kandpal & Junko Onishi, 2023. "Cash Transfers, Food Prices, and Nutrition Impacts on Ineligible Children," The Review of Economics and Statistics, MIT Press, vol. 105(2), pages 327-343, March.
    • Handle: RePEc:tpr:restat:v:105:y:2023:i:2:p:327-343
    DOI: 10.1162/rest_a_01061
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    Cited by:

    1. Chloe Allison & Neryvia Pillay, 2024. "Cash transfers and prices what is the impact of social welfare on prices," Working Papers 11057, South African Reserve Bank.

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