IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v116y2019icp137-149.html
   My bibliography  Save this article

The impact of recipient choice on aid effectiveness

Author

Listed:
  • Shapiro, Jeremy

Abstract

This study compares the impact of several common development programs (agricultural extension, subsidized agricultural inputs and poultry transfers) to cash transfers equal to the cost of each program. Prior to program delivery, recipients were asked their valuation for each program (i.e., their cash indifference point between cash and the program) as a proxy for their preference between cash and the program. Subsequently, recipients were randomly assigned to receive cash or a program. Six months after delivery of cash and programs, we do not find that individuals who receive the intervention they value most are different from others in terms of consumption, food security, assets, psychological well-being or feelings of autonomy, and can rule out effects of any meaningful size. When comparing cash transfers directly to common development programs, the point estimates indicate no difference in impacts and confidence intervals rule out large differences. We do find that cash transfers increase feelings of autonomy and respect compared to non-cash interventions.

Suggested Citation

  • Shapiro, Jeremy, 2019. "The impact of recipient choice on aid effectiveness," World Development, Elsevier, vol. 116(C), pages 137-149.
  • Handle: RePEc:eee:wdevel:v:116:y:2019:i:c:p:137-149
    DOI: 10.1016/j.worlddev.2018.10.010
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305750X18303966
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Nerlove, Marc, 1999. "Transforming Economics: Theodore W. Schultz, 1902-1998: In Memoriam," Economic Journal, Royal Economic Society, vol. 109(459), pages 726-748, November.
    2. Christopher Blattman & Julian C. Jamison & Margaret Sheridan, 2017. "Reducing Crime and Violence: Experimental Evidence from Cognitive Behavioral Therapy in Liberia," American Economic Review, American Economic Association, vol. 107(4), pages 1165-1206, April.
    3. Fafchamps, Marcel & McKenzie, David & McKenzie, David & Quinn, Simon & Woodruff, Christopher, 2011. "When is capital enough to get female enterprises growing ? evidence from a randomized experiment in Ghana," Policy Research Working Paper Series 5706, The World Bank.
    4. Hidrobo, Melissa & Hoddinott, John & Peterman, Amber & Margolies, Amy & Moreira, Vanessa, 2014. "Cash, food, or vouchers? Evidence from a randomized experiment in northern Ecuador," Journal of Development Economics, Elsevier, vol. 107(C), pages 144-156.
    5. Duflo, Esther & Hanna, Rema, 2005. "Monitoring Works: Getting Teachers to Come to School," CEPR Discussion Papers 5426, C.E.P.R. Discussion Papers.
    6. B. Douglas Bernheim & Debraj Ray & Şevin Yeltekin, 2015. "Poverty and Self‐Control," Econometrica, Econometric Society, vol. 83(5), pages 1877-1911, September.
    7. Jesse M. Cunha, 2014. "Testing Paternalism: Cash versus In-Kind Transfers," American Economic Journal: Applied Economics, American Economic Association, vol. 6(2), pages 195-230, April.
    8. Fischer, Gregory & Berry, James & Guiteras, Raymond, 2012. "Eliciting and utilizing willingness to pay: evidence from field trials in Northern Ghana," LSE Research Online Documents on Economics 47913, London School of Economics and Political Science, LSE Library.
    9. Nava Ashraf & Dean Karlan & Wesley Yin, 2006. "Tying Odysseus to the Mast: Evidence From a Commitment Savings Product in the Philippines," The Quarterly Journal of Economics, Oxford University Press, vol. 121(2), pages 635-672.
    10. Sergei Izmalkov, 2004. "Multi-Unit Open Ascending Price Efficient Auction," Working Papers 2004.91, Fondazione Eni Enrico Mattei.
    11. Anderson, Michael L., 2008. "Multiple Inference and Gender Differences in the Effects of Early Intervention: A Reevaluation of the Abecedarian, Perry Preschool, and Early Training Projects," Journal of the American Statistical Association, American Statistical Association, vol. 103(484), pages 1481-1495.
    12. Berry, James & Fischer, Greg & Guiteras, Raymond, 2015. "Eliciting and Utilizing Willingness to Pay: Evidence from Field Trials in Northern Ghana," CEPR Discussion Papers 10703, C.E.P.R. Discussion Papers.
    13. repec:ucp:ecdecc:doi:10.1086/695284 is not listed on IDEAS
    14. David G. Abler & Vasant A. Sukhatme, 2006. "The "Efficient but Poor" Hypothesis," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(3), pages 338-343.
    15. Esther Duflo & Michael Kremer & Jonathan Robinson, 2011. "Nudging Farmers to Use Fertilizer: Theory and Experimental Evidence from Kenya," American Economic Review, American Economic Association, vol. 101(6), pages 2350-2390, October.
    16. Johannes Haushofer & Jeremy Shapiro, 2016. "The Short-term Impact of Unconditional Cash Transfers to the Poor: ExperimentalEvidence from Kenya," The Quarterly Journal of Economics, Oxford University Press, vol. 131(4), pages 1973-2042.
    17. Jessica Cohen & Pascaline Dupas & Simone Schaner, 2015. "Price Subsidies, Diagnostic Tests, and Targeting of Malaria Treatment: Evidence from a Randomized Controlled Trial," American Economic Review, American Economic Association, vol. 105(2), pages 609-645, February.
    18. Dickson M. Nyariki, 2011. "Farm Size, Modern Technology Adoption, and Efficiency of Small Holdings in Developing Countries: Evidence from Kenya," Journal of Developing Areas, Tennessee State University, College of Business, vol. 45(1), pages 35-52, July-Dece.
    19. B. Kelsey Jack, 2013. "Private Information and the Allocation of Land Use Subsidies in Malawi," American Economic Journal: Applied Economics, American Economic Association, vol. 5(3), pages 113-135, July.
    20. Marianne Bertrand & Sendhil Mullainathan & Eldar Shafir, 2004. "A Behavioral-Economics View of Poverty," American Economic Review, American Economic Association, vol. 94(2), pages 419-423, May.
    21. Francisco J. Buera & Joseph P. Kaboski & Yongseok Shin, 2016. "Taking Stock of the Evidence on Micro-Financial Interventions," NBER Working Papers 22674, National Bureau of Economic Research, Inc.
    22. repec:wbk:wbpubs:29115 is not listed on IDEAS
    23. David K. Evans & Anna Popova, 2017. "Cash Transfers and Temptation Goods," Economic Development and Cultural Change, University of Chicago Press, vol. 65(2), pages 189-221.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Cash transfers; Willingness to pay; Preferences; Poverty;

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O22 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:wdevel:v:116:y:2019:i:c:p:137-149. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.