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El impacto del BDH en el gasto de bienes no deseados: Un análisis de regresión discontinua
[The impact of the Bono de Desarrollo Humano in the expenditure for undesirable goods: A regression discontinuity analysis]

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  • Nabernegg, Markus
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    Abstract

    Conditional Cash Transfer (CCT) programs are gaining more and more weight in Latin America's public policy. Although there exists a wide range of literature about the impact of these programs on school matriculation, the reduction in child labour and the improvements in the health status of recipients, there exist no extensive works on the possible bad use of the benefits. This paper investigates the impact of the Ecuadorian Bono de Desarrollo Humano (BDH) program on household expenditures for cigarettes, alcohol and cell phones. With data from the Condiciones de Vida questionnaire of the year 2006 I built a quasi-experiment thanks to the assignment rule of the BDH (which is the Selben index) and use a regression discontinuity method to estimate the impact of the program on these undesirable goods. The results show that there is no impoact of the BDH on the expenditure for the three goods (measured in expenditure per capita and in the proportion of total expenditure) for households located at the limit between the second and third quintile, and therefore, presumably, also not for poorer households. This confirms the good design of the assignment rule of the program.

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    Bibliographic Info

    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 41295.

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    Date of creation: 06 Aug 2012
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    Handle: RePEc:pra:mprapa:41295

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    Keywords: Conditional Cash Transfers; Latin America; Regression Discontinuity;

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    1. Mauricio Leon & Stephen Younger, 2007. "Transfer payments, mothers' income and child health in ecuador," The Journal of Development Studies, Taylor and Francis Journals, vol. 43(6), pages 1126-1143.
    2. T. Paul Schultz, 2001. "School Subsidies for the Poor: Evaluating the Mexican Progresa Poverty Program," Working Papers 834, Economic Growth Center, Yale University.
    3. Paxson, Christina & Schady, Norbert, 2007. "Does money matter ? The effects of cash transfers on child health and development in rural Ecuador," Policy Research Working Paper Series 4226, The World Bank.
    4. Oosterbeek, Hessel & Ponce, Juan & Schady, Norbert, 2008. "The impact of cash transfers on school enrollment : evidence from Ecuador," Policy Research Working Paper Series 4645, The World Bank.
    5. Valerie Lechene & Orazio Attanasio, 2002. "Tests of Income Pooling in Household Decisions," Economics Series Working Papers 106, University of Oxford, Department of Economics.
    6. Schady, Norbert & Araujo, Maria Caridad, 2006. "Cash transfers, conditions, school enrollment, and child work : evidence from a randomized experiment in Ecuador," Policy Research Working Paper Series 3930, The World Bank.
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