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The Impact of a Large-Scale Poverty-Targeted Cash Transfer Program on Intertemporal Choice

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  • Sudhanshu Handa
  • David Seidenfeld
  • Gelson Tembo

Abstract

We use a social experiment to test whether the government of Zambia’s cash transfer program affects intertemporal choice. A cash transfer program may also alter expectations about future quality of life and make one happier, two conditions that can affect intertemporal decision-making and the desire to invest in the future. We find that the program affects time discounting and that psychological states are also strongly associated with time discounting, but psychological states do not mediate the effect of the cash transfer on time discounting.

Suggested Citation

  • Sudhanshu Handa & David Seidenfeld & Gelson Tembo, 2020. "The Impact of a Large-Scale Poverty-Targeted Cash Transfer Program on Intertemporal Choice," Economic Development and Cultural Change, University of Chicago Press, vol. 69(1), pages 485-512.
    • Handle: RePEc:ucp:ecdecc:doi:10.1086/702997
    DOI: 10.1086/702997
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    Cited by:

    1. Ghulam Mustafa, 2022. "Weather Shocks, Unconditional Cash Transfers and Household Food Outcomes," PIDE-Working Papers 2022:8, Pakistan Institute of Development Economics.
    2. Preuss, Malte, 2021. "Intra-individual stability of two survey measures on forward-looking attitude," Journal of Economic Behavior & Organization, Elsevier, vol. 190(C), pages 201-227.
    3. Watson, Barry & Kong, Nancy & Phipps, Shelley, 2022. "Dreaming of a Brighter Future? The Impact of Economic Vulnerability on University Aspirations," IZA Discussion Papers 15539, Institute of Labor Economics (IZA).

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