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Beyond Cash: Assessing Externality and Behaviour Effects of Non-Experimental Cash Transfers

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  • Rafael Perez Ribas

    ()
    (International Poverty Centre)

  • Fabio Veras Soares

    ()
    (International Poverty Centre)

  • Clarissa Gondim Teixeira

    ()
    (International Policy Centre for Inclusive Growth)

  • Elydia Silva

    ()
    (International Poverty Centre)

  • Guilherme Issamu Hirata

    ()
    (International Poverty Centre)

Abstract

In this paper we propose a method to estimate externality effects in cash transfer programmes, even in cases when the benefit is not randomly assigned. Externality is assessed through the decomposition of the average treatment effect on the treated (ATT) into participation (direct) effect and externality (indirect) effect. We also suggest a non parametric decomposition to investigate whether changes in household outcomes are caused by the income transfer itself or by the other non-monetary components of the programme, such as conditionalities and family support services. We apply all these decompositions on the effect of a conditional cash transfer (CCT) programme on household consumption and savings in Paraguay. This was possible because of the presence of two distinct comparison groups, one within the village and potentially exposed to the externality, and another in a different village not affected by the programme. Furthermore, the evaluation survey collected information on both income and consumption. The results indicate that the programme has a small impact on consumption and a considerable impact on savings. In the absence of externality, however, the programme would have a higher effect on consumption, mostly associated with the cash transfer, and a lower effect on savings. Moreover, the impact on the pattern of consumption is significantly related to a substitution effect and is not related to the increase in income. (...)

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File URL: http://www.ipc-undp.org/pub/IPCWorkingPaper65.pdf
File Function: First version, 2010
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Bibliographic Info

Paper provided by International Policy Centre for Inclusive Growth in its series Working Papers with number 65.

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Length: 34
Date of creation: Jun 2010
Date of revision:
Publication status: Published by UNDP - International Policy Centre for Inclusive Growth , June 2010, pages 1-34
Handle: RePEc:ipc:wpaper:65

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Keywords: Beyond Cash: Assessing Externality and Behaviour Effects of Non-Experimental Cash Transfers;

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Cited by:
  1. Clarissa Gondim Teixeira & Fabio Veras Soares & Elydia Silva & Guilherme Issamu Hirata, 2011. "How Effective are the Non-monetary Components of CCT Programs?," One Pager 129, International Policy Centre for Inclusive Growth.
  2. Clarissa Gondim Teixeira & Fabio Veras Soares & Elydia Silva & Guilherme Issamu Hirata, 2012. "¿Qué tan Eficaces son los Componentes no Monetarios de los Programas de Transferencias Condicionadas: El Caso del Piloto de Tekopora?," One Pager Spanish 129, International Policy Centre for Inclusive Growth.

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