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The Impact of Conditional Cash Transfers on Consumption and Investment in Nicaragua

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  • John A. Maluccio

Abstract

This article examines the impact of a Nicaraguan conditional cash transfer programme on measures of expenditures and productive investment. Despite clear evidence from a randomised evaluation that the programme increased current expenditures, there is little evidence that it increased agricultural or non-agricultural investment. An estimated marginal propensity to consume out of the transfers of nearly one, combined with no effect of cumulative past transfers on current consumption, corroborate the direct evidence on investment. In contrast to gains made in human capital investment, the potential for long term increases in consumption as a result of other forms of increased investment may be limited.

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File URL: http://www.middlebury.edu/services/econ/repec/mdl/ancoec/0722.pdf
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Bibliographic Info

Paper provided by Middlebury College, Department of Economics in its series Middlebury College Working Paper Series with number 0722.

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Length: 40 pages
Date of creation: Oct 2007
Date of revision:
Handle: RePEc:mdl:mdlpap:0722

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  7. Zezza, Alberto & Winters, Paul C. & Davis, Benjamin & Carletto, Calogero & Covarrubias, Katia & Quinones, Esteban & Stamoulis, Kostas G. & Di Giuseppe, Stefania, 2007. "Rural Household Access to Assets and Agrarian Institutions: A Cross Country Comparison," 106th Seminar, October 25-27, 2007, Montpellier, France 7925, European Association of Agricultural Economists.
  8. Sadoulet, Elisabeth & Janvry, Alain de & Davis, Benjamin, 2001. "Cash Transfer Programs with Income Multipliers: PROCAMPO in Mexico," World Development, Elsevier, vol. 29(6), pages 1043-1056, June.
  9. Caldes, Natalia & Coady, David & Maluccio, John A., 2006. "The cost of poverty alleviation transfer programs: A comparative analysis of three programs in Latin America," World Development, Elsevier, vol. 34(5), pages 818-837, May.
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  12. Varangis, Panos & Siegel, Paul & Giovannucci, Daniele & Lewin, Bryan, 2003. "Dealing with the coffee crisis in Central America - impacts and strategies," Policy Research Working Paper Series 2993, The World Bank.
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  16. Sudhanshu Handa & Benjamin Davis, 2006. "The Experience of Conditional Cash Transfers in Latin America and the Caribbean," Development Policy Review, Overseas Development Institute, vol. 24(5), pages 513-536, 09.
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Cited by:
  1. Das, Ashis & Friedman, Jed & Kandpal, Eeshani, 2014. "Does involvement of local NGOs enhance public service delivery ? cautionary evidence from a Malaria-prevention evaluation in India," Policy Research Working Paper Series 6931, The World Bank.
  2. Jesse Cunha, 2010. "Testing Paternalism: Cash vs. In-kind Transfer in Rural Mexico," Discussion Papers 09-021, Stanford Institute for Economic Policy Research.
  3. Karamba, Wendy R. & Quiñones, Esteban J. & Winters, Paul, 2011. "Migration and food consumption patterns in Ghana," Food Policy, Elsevier, vol. 36(1), pages 41-53, February.
  4. Das, Ashis Kumar & Friedman, Jed & Kandpal, Eeshani, 2013. "Utilizing Local Capacity to Supplement Government Health Programs: Cautionary Evidence from a Malaria Prevention RCT in India," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150343, Agricultural and Applied Economics Association.
  5. Fitz, Dylan, 2013. "Development Chutes and Ladders: A Joint Impact Evaluation of Asset and Cash Transfers in Brazil," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150254, Agricultural and Applied Economics Association.

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