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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

Little is known about the evolution and persistence of the effects of one-time cash transfers, especially in rural agricultural settings with limited productive investment opportunities. We use bimonthly phone surveys to estimate dynamic impacts for cash transfer recipients in Liberia and Malawi. We find immediate increases in food security that attenuate over time but do not entirely dissipate even 1.5–2 years later, driven by increased farm investments and production. We find increases in farm profits, reductions in casual off-farm labor, improvements in psychological well-being, and, in Liberia, a reduction in intimate partner violence (IPV).

Suggested Citation

  • Shilpa Aggarwal & Jenny C. Aker & Dahyeon Jeong & Naresh Kumar & David Sungho Park & Jonathan Robinson & Alan Spearot, 2026. "The Dynamic Effects of Cash Transfers to Agricultural Households," American Economic Journal: Applied Economics, American Economic Association, vol. 18(3), pages 254-282, July.
    • Handle: RePEc:aea:aejapp:v:18:y:2026:i:3:p:254-82
    DOI: 10.1257/app.20230034
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    More about this item

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
    • 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
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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