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Spillover effects in adoption of cash transfer programs by Latin American countries

Author

Listed:
  • Diego E. Vacaflores

    (Texas State University)

  • James P. LeSage

    (Texas State University)

Abstract

Some of the most effective public programs used in Latin America to reduce poverty and inequality have been non-contributory cash transfers. We examine country-specific characteristics that lead countries to adopt these programs over time using a state-transition spatial probit panel data model that takes into account dependence between countries’ decision to adopt these programs. Intuitively, past adoption of cash transfer programs by other countries might have an impact on the probability that a country implements this type of program. We explore alternative connectivity structures to model dependence, spatial proximity as well as connections based on population migration flows, finding out-migration as most consistent with our sample data and spatial regression specification. For our panel of 17 Latin American countries over the period 2000–2017, we find evidence of dependence between countries in the probability of adoption of conditional cash transfer programs, but no such evidence in the case of unconditional cash transfer programs.

Suggested Citation

  • Diego E. Vacaflores & James P. LeSage, 2020. "Spillover effects in adoption of cash transfer programs by Latin American countries," Journal of Geographical Systems, Springer, vol. 22(2), pages 177-199, April.
    • Handle: RePEc:kap:jgeosy:v:22:y:2020:i:2:d:10.1007_s10109-020-00322-6
    DOI: 10.1007/s10109-020-00322-6
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    References listed on IDEAS

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    Cited by:

    1. Emiliano A. Carlevaro, 2022. "Exploring network effects during bank failures in Argentina," Economics Discussion / Working Papers 22-01, The University of Western Australia, Department of Economics.
    2. Yuxue Sheng & James Paul LeSage, 2021. "Interpreting spatial regression models with multiplicative interaction explanatory variables," Journal of Geographical Systems, Springer, vol. 23(3), pages 333-360, July.
    3. Carlevaro Emiliano A., 2023. "Contagion of bank failures through the interbank network in Argentina," Asociación Argentina de Economía Política: Working Papers 4631, Asociación Argentina de Economía Política.
    4. Yanbing Wang & Niklas Möhring & Robert Finger, 2023. "When my neighbors matter: Spillover effects in the adoption of large‐scale pesticide‐free wheat production," Agricultural Economics, International Association of Agricultural Economists, vol. 54(2), pages 256-273, March.

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    More about this item

    Keywords

    Conditional cash transfer programs; Government programs; Latin America; Cross-sectional dependence;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • N96 - Economic History - - Regional and Urban History - - - Latin America; Caribbean
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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