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Food and cash transfers: evidence from Colombia

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  • Orazio Attanasio

    ()
    (Institute for Fiscal Studies and University College London)

  • Erich Battistin

    ()
    (Institute for Fiscal Studies)

  • Alice Mesnard

    ()
    (Institute for Fiscal Studies)

Abstract

We study food Engel curves among the poor population targeted by a conditional cash transfer programme in Colombia. After controlling for the endogeneity of total expenditure and for the (unobserved) variability of prices across villages, the best fit is provided by a log-linear specification. Our estimates imply that an increase in total expenditure by 10% would lead to a decrease of 1% in the share of food. However, quasi-experimental estimates of the impact of the programme on total and food consumption show that the share of food increases, suggesting that the programme has more complex impacts than increasing household income. In particular, our results are not inconsistent with the hypothesis that the programme, targeted to women, could increase their bargaining power and induce a more than proportional increase in food consumption.

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Bibliographic Info

Paper provided by Institute for Fiscal Studies in its series IFS Working Papers with number W09/15.

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Date of creation: Jul 2009
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Handle: RePEc:ifs:ifsewp:09/15

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Keywords: Demand patterns; food Engel curves; evaluation of welfare programme;

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References

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  1. Martin Browning & Pierre-Andre Chiappori, 1994. "Efficient Intra-Household Allocations: a General Characterization and Empirical Tests," Department of Economics Working Papers 1994-02, McMaster University.
  2. Imbens, Guido W & Angrist, Joshua D, 1994. "Identification and Estimation of Local Average Treatment Effects," Econometrica, Econometric Society, vol. 62(2), pages 467-75, March.
  3. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January.
  4. Orazio Attanasio & Valérie Lechene, 2002. "Tests of Income Pooling in Household Decisions," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(4), pages 720-748, October.
  5. Sonia Bhalotra & Cliff Attfield, 1998. "Intrahousehold resource allocation in rural Pakistan: a semiparametric analysis," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 13(5), pages 463-480.
  6. Orazio Attanasio & Alice Mesnard, 2006. "The Impact of a Conditional Cash Transfer Programme on Consumption in Colombia," Fiscal Studies, Institute for Fiscal Studies, vol. 27(4), pages 421-442, December.
  7. Sourafel Girma & Abbi M. Kedir, 2003. "Quadratic Food Engel Curves with Measurement Error: Evidence from a Budget Survey," Discussion Papers in Economics 03/17, Department of Economics, University of Leicester.
  8. Schady, Norbert & Rosero, Jose, 2007. "Are cash transfers made to women spent like other sources of income?," Policy Research Working Paper Series 4282, The World Bank.
  9. Lewbel, Arthur, 1996. "Demand Estimation with Expenditure Measurement Errors on the Left and Right Hand Side," The Review of Economics and Statistics, MIT Press, vol. 78(4), pages 718-25, November.
  10. Abbi Kedir & Sourafel Girma, 2007. "Quadratic Engel Curves with Measurement Error: Evidence from a Budget Survey," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(1), pages 123-138, 02.
  11. Richard Blundell & Alan Duncan & Krishna Pendakur, 1998. "Semiparametric estimation and consumer demand," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 13(5), pages 435-461.
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Cited by:
  1. Ubfal, Diego, 2012. "How General Are Time Preferences? Eliciting Good-Specific Discount Rates," IZA Discussion Papers 6774, Institute for the Study of Labor (IZA).
  2. Baez, Javier E. & Camacho, Adriana, 2011. "Assessing the Long-term Effects of Conditional Cash Transfers on Human Capital: Evidence from Colombia," IZA Discussion Papers 5751, Institute for the Study of Labor (IZA).
  3. Attanasio, Orazio & Di Maro, Vincenzo & Lechene, Valérie & Phillips, David, 2013. "Welfare consequences of food prices increases: Evidence from rural Mexico," Journal of Development Economics, Elsevier, vol. 104(C), pages 136-151.
  4. Buser, Thomas & Oosterbeek, Hessel & Plug, Erik & Ponce, Juan & Rosero, José, 2014. "The Impact of Positive and Negative Income Changes on the Height and Weight of Young Children," IZA Discussion Papers 8130, Institute for the Study of Labor (IZA).
  5. Darwin Cortés & Jorge Eduardo Pérez, 2010. "El consumo de los hogares colombianos, 2006-2007: estimación de sistemas de demanda," DOCUMENTOS DE TRABAJO 007271, UNIVERSIDAD DEL ROSARIO.
  6. Lentz, Erin C. & Barrett, Christopher B., 2013. "The economics and nutritional impacts of food assistance policies and programs," Food Policy, Elsevier, vol. 42(C), pages 151-163.
  7. Tusiime, Hamidu A. & Renard, Robrecht & Smets, Lodewijk, 2013. "Food aid and household food security in a conflict situation: Empirical evidence from Northern Uganda," Food Policy, Elsevier, vol. 43(C), pages 14-22.
  8. World Bank, 2011. "Work and Family : Latin American and Caribbean Women in Search of a New Balance," World Bank Other Operational Studies 12489, The World Bank.
  9. Orazio P. Attanasio & Val�rie Lechene, 2014. "Efficient Responses to Targeted Cash Transfers," Journal of Political Economy, University of Chicago Press, vol. 122(1), pages 178 - 222.
  10. Emilio Gutierrez & Laura Juarez & Adrian Rubli, 2011. "Grandfathers and Grandsons: SHould Transfers be Targeted to Women?," Working Papers 1103, Centro de Investigacion Economica, ITAM.
  11. Baez, Javier E. & Camacho, Adriana & Conover, Emily & Zarate, Roman A., 2012. "Conditional cash transfers, political participation, and voting behavior," Policy Research Working Paper Series 6215, The World Bank.

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