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The Demand for Food of Poor Urban Mexican Households: Understanding Policy Impacts Using Structural Models

Author

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  • Manuela Angelucci
  • Orazio Attanasio

Abstract

We use Oportunidades, a conditional cash transfer to women, to show that standard demand models do not represent the sample's behavior: Oportunidades increases eligible households' food budget shares, despite food being a necessity; demand for food and high-protein food changes over time only in treatment areas; the treatment effects on food and high-protein food consumption are larger than the prediction from the Engel curves at baseline; and the curves do not change in eligible households with high baseline bargaining power for the transfer recipient. Thus, handing transfers to women is a likely determinant of the observed nutritional changes. (JEL D12, H23, J16, O12)

Suggested Citation

  • Manuela Angelucci & Orazio Attanasio, 2013. "The Demand for Food of Poor Urban Mexican Households: Understanding Policy Impacts Using Structural Models," American Economic Journal: Economic Policy, American Economic Association, vol. 5(1), pages 146-178, February.
  • Handle: RePEc:aea:aejpol:v:5:y:2013:i:1:p:146-78
    Note: DOI: 10.1257/pol.5.1.146
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    Citations

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    Cited by:

    1. Avitabile,Ciro & Bobba,Matteo & Pariguana,Marco, 2015. "High school track choice and financial constraints : evidence from urban Mexico," Policy Research Working Paper Series 7427, The World Bank.
    2. Andreas Drichoutis & Rodolfo Nayga & Heather Rouse & Michael Thomsen, 2015. "Food environment and childhood obesity: the effect of dollar stores," Health Economics Review, Springer, vol. 5(1), pages 1-13, December.
    3. Liu, Kai, 2016. "Insuring against health shocks: Health insurance and household choices," Journal of Health Economics, Elsevier, vol. 46(C), pages 16-32.
    4. Pierre Bachas & Paul Gertler & Sean Higgins & Enrique Seira, 2017. "How Debit Cards Enable the Poor to Save More," NBER Working Papers 23252, National Bureau of Economic Research, Inc.
    5. Liu, Kai, 2013. "Health Insurance Coverage for Low-income Households: Consumption Smoothing and Investment," Discussion Paper Series in Economics 16/2013, Norwegian School of Economics, Department of Economics.
    6. M. Caridad Araujo & Mariano Bosch & Norbert Schady, 2017. "Can Cash Transfers Help Households Escape an Inter-Generational Poverty Trap?," NBER Chapters,in: The Economics of Asset Accumulation and Poverty Traps National Bureau of Economic Research, Inc.
    7. Dragan Filipovich & Miguel Niño-Zarazúa & Alma Santillán Hernández, 2018. "Campaign externalities, programmatic spending, and voting preferences in rural Mexico: The case of Progresa-Oportunidades-Prospera programme," WIDER Working Paper Series 027, World Institute for Development Economic Research (UNU-WIDER).
    8. Maria Porter, 2016. "Effects of microcredit and other loans on female empowerment in Bangladesh: the borrower's gender influences intra-household resource allocation," Agricultural Economics, International Association of Agricultural Economists, vol. 47(2), pages 235-245, March.
    9. Orazio P. Attanasio & Valérie Lechene, 2014. "Efficient Responses to Targeted Cash Transfers," Journal of Political Economy, University of Chicago Press, vol. 122(1), pages 178-222.
    10. Cruz, Marcio & Ziegelhofer, Zacharias, 2014. "Beyond the income effect : impacts of conditional cash transfer programs on private investments in human capital," Policy Research Working Paper Series 6867, The World Bank.
    11. Robert A. Pollak, 2017. "How Bargaining in Marriage drives Marriage Market Equilibrium," NBER Working Papers 24000, National Bureau of Economic Research, Inc.
    12. Robert A. Pollak, 2018. "How Bargaining in Marriage Drives Marriage Market Equilibrium," Working Papers 2018-004, Human Capital and Economic Opportunity Working Group.
    13. Thomas Buser & Hessel Oosterbeek & Erik Plug & Juan Ponce & José Rosero, 2017. "The Impact of Positive and Negative Income Changes on the Height and Weight of Young Children," World Bank Economic Review, World Bank Group, vol. 31(3), pages 786-808.
    14. Independent Evaluation Group, 2014. "Social Safety Nets and Gender : Learning from Impact Evaluations and World Bank Projects," World Bank Publications, The World Bank, number 21365.
    15. M. Caridad Araujo & Mariano Bosch & Norbert Schady, 2017. "Can Cash Transfers Help Households Escape an Inter-Generational Poverty Trap?," NBER Chapters,in: The Economics of Poverty Traps National Bureau of Economic Research, Inc.
    16. Basu, Karna & Wong, Maisy, 2015. "Evaluating seasonal food storage and credit programs in east Indonesia," Journal of Development Economics, Elsevier, vol. 115(C), pages 200-216.
    17. Bazzi, Samuel & Sumarto, Sudarno & Suryahadi, Asep, 2015. "It's all in the timing: Cash transfers and consumption smoothing in a developing country," Journal of Economic Behavior & Organization, Elsevier, vol. 119(C), pages 267-288.
    18. Gilligan, Daniel & Hidrobo, Melissa & Hoddinott, John & Roy, Shalini & Schwab, Benjamin, 2014. "Much ado about modalities: Multicountry experiments on the effects of cash and food transfers on consumption patterns," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 171159, Agricultural and Applied Economics Association.

    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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