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The Dynamic Effects of Cash Transfers to Agricultural Households

Author

Listed:
  • Shilpa Aggarwal
  • Jenny C. Aker
  • Dahyeon Jeong
  • Naresh Kumar
  • David Sungho Park
  • Jonathan Robinson
  • Alan Spearot

Abstract

While cash transfers will tautologically increase contemporaneous consumption, it is unclear whether these gains will persist, especially in rural agricultural settings with limited productive investment opportunities. Using bi-monthly survey data from recipients of a large, unconditional cash transfer in Liberia and Malawi, we document sustained food security improvements until 1.5-2 years after disbursement, driven by increased farm investments and production. We additionally document reductions in casual off-farm labor, increases in psychological well-being and, in Liberia, a decline in IPV. We find similar increases in harvest output across different transfer sizes. Those receiving larger transfers spend more on housing and durables.

Suggested Citation

  • Shilpa Aggarwal & Jenny C. Aker & Dahyeon Jeong & Naresh Kumar & David Sungho Park & Jonathan Robinson & Alan Spearot, 2024. "The Dynamic Effects of Cash Transfers to Agricultural Households," NBER Working Papers 32431, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:32431
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    More about this item

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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