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Comparing the Productive Effects of Cash and Food Transfers in a Crisis Setting: Evidence from a randomized experiment in Yemen

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  • Benjamin Schwab
  • UNICEF Office of Research - Innocenti

Abstract

The productive impacts of transfer programmes have received increased attention. However, little is known about such effects in emergency and crisis settings. Even less is known about whether transfer type – a food basket or a cash grant – influences the productive potential of such transfers. Theory suggests that, while cash transfers can relieve liquidity constraints associated with investments, subsidized food provision, by acting as a form of insurance, may prevent households from retreating to conservative income-generating strategies during volatile periods. Using a randomized field experiment in Yemen, we contrast the effects of transfer modality. The results demonstrate a modest productive impact of both modalities and suggest a role for both liquidity and price risk channels. Cash transfer recipients invested relatively more in activities with higher liquidity requirements (livestock), while food recipients incorporated higher-return crops into their agricultural portfolios.

Suggested Citation

  • Benjamin Schwab & UNICEF Office of Research - Innocenti, 2018. "Comparing the Productive Effects of Cash and Food Transfers in a Crisis Setting: Evidence from a randomized experiment in Yemen," Papers inwopa965, Innocenti Working Papers.
    • Handle: RePEc:ucf:inwopa:inwopa965
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    Cited by:

    1. Jeong,Dahyeon & Trako,Iva, 2022. "Cash and In-Kind Transfers in Humanitarian Settings : A Review of Evidence and Knowledge Gaps," Policy Research Working Paper Series 10026, The World Bank.
    2. Kaila, Heidi & Azad, Abul, 2023. "The effects of crime and violence on food insecurity and consumption in Nigeria," Food Policy, Elsevier, vol. 115(C).
    3. Silvio Daidone & Francisco Pereira Fontes, 2023. "The role of social protection in mitigating the effects of rainfall shocks. Evidence from Ethiopia," Journal of Productivity Analysis, Springer, vol. 60(3), pages 315-332, December.
    4. Xing Ji & Jingwen Xu & Hongxiao Zhang, 2022. "How Does China’s New Rural Pension Scheme Affect Agricultural Production?," Agriculture, MDPI, vol. 12(8), pages 1-23, July.
    5. Mastrorillo, Marina & Scognamillo, Antonio & Ginet, Camille & Pietrelli, Rebecca & d’Errico, Marco & Ignaciuk, Adriana, 2022. "Enhancing refugees’ self-reliance in Uganda – The role of cash and food assistance," ESA Working Papers 324702, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    6. Sitko, Nicholas J. & Scognamillo, Antonio & Malevolti, Giulia, 2021. "Does receiving food aid influence the adoption of climate-adaptive agricultural practices? Evidence from Ethiopia and Malawi," Food Policy, Elsevier, vol. 102(C).
    7. Koppenberg, Maximilian & Mishra, Ashok K. & Hirsch, Stefan, 2023. "Food Aid and Violent Conflict: A Review of Literature," IZA Discussion Papers 16574, Institute of Labor Economics (IZA).

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