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Program Conditionality and Food Security: The Impact of PROGRESA and PROCAMPO Transfers in Rural Mexico

  • M.Ruiz-Arranz

    (International Monetary Fund, Washington DC, USA)

  • B.Davis, S.Handa

    (Food and Agriculture Organization of the United Nations, Rome, Italy)

  • M.Stampini

    (University of North Carolina at Chapel Hill, NC, USA)

  • P.Winters

    (American University, Washington DC, USA)

This paper examines the PROGRESA and PROCAMPO cash transfer programs in Mexico and evaluates their impact on household food security and nutrition. These two programs differ in their targeting and design: PROGRESA is aimed at women and program conditionality is linked to current consumption and human capital investment; PROCAMPO benefits male farmers and program conditionality is linked to agricultural production. The main question addressed by the paper is whether a cash transfer program geared to agricultural production can have the same impact on food security as a cash transfer program geared to consumption through purchases. Our results suggest that monetary payments linked to a productive asset -land- can have as large or larger impact on food security as cash transfers not linked to a productive asset. We show that both programs boost total food consumption and caloric intake in similar proportions. However, increased food security is achieved through different channels - for PROGRESA through purchases while for PROCAMPO through investment in home production. This suggests that the choice of program design depends on objectives beyond total food consumption and caloric intake, such as consumption from specific food categories, diversity of food consumption, investment in agricultural production, and the degree of access to retail food markets.

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File URL: http://www.anpec.org.br/revista/vol7/vol7n2p249_278.pdf
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Article provided by ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics] in its journal Economia.

Volume (Year): 7 (2006)
Issue (Month): 2 ()
Pages: 249-278

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Handle: RePEc:anp:econom:v:7:y:2006:i:2:p:249-278
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  1. Case, Anne & Deaton, Angus, 1998. "Large Cash Transfers to the Elderly in South Africa," Economic Journal, Royal Economic Society, vol. 108(450), pages 1330-61, September.
  2. Bouis, Howarth E. & Haddad, Lawrence J., 1992. "Are estimates of calorie-income fxelasticities too high? : A recalibration of the plausible range," Journal of Development Economics, Elsevier, vol. 39(2), pages 333-364, October.
  3. Strauss, John, 1986. "Does Better Nutrition Raise Farm Productivity?," Journal of Political Economy, University of Chicago Press, vol. 94(2), pages 297-320, April.
  4. Hoddinott, John & Haddad, Lawrence, 1995. "Does Female Income Share Influence Household Expenditures? Evidence from Cote d'Ivoire," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(1), pages 77-96, February.
  5. Alderman, Harold & von Braun, Joachim, 1984. "The effects of the Egyptian food ration and subsidy system on income distribution and consumption:," Research reports 45, International Food Policy Research Institute (IFPRI).
  6. Handa, Sudhanshu, 1994. "Gender, headship and intrahousehold resource allocation," World Development, Elsevier, vol. 22(10), pages 1535-1547, October.
  7. Sadoulet, Elisabeth & Janvry, Alain de & Davis, Benjamin, 2001. "Cash Transfer Programs with Income Multipliers: PROCAMPO in Mexico," World Development, Elsevier, vol. 29(6), pages 1043-1056, June.
  8. David Sahn & Ari Gerstle, 2004. "Child allowances and allocative decisions in Romanian households," Applied Economics, Taylor & Francis Journals, vol. 36(14), pages 1513-1521.
  9. Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, vol. 54(3), pages 679-85, May.
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