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Transfers to Households with Children and Child Development

Author

Listed:
  • Daniela Del Boca
  • Christopher Flinn
  • Matthew Wiswall

Abstract

We utilise a model of household investments in the development of children to explore the impact of various transfer policies on the distribution of child outcomes. We develop a cost criterion that can be used to compare the efficacy of unrestricted, restricted, and conditional cash transfer (CCT) systems, and find that an optimally chosen CCT programme is the most cost†efficient way to attain any given gain in average child quality. We explore several design elements for the CCT system and discuss the role of production function uncertainty and measurement error.

Suggested Citation

  • Daniela Del Boca & Christopher Flinn & Matthew Wiswall, 2016. "Transfers to Households with Children and Child Development," Economic Journal, Royal Economic Society, vol. 126(596), pages 136-183, October.
    • Handle: RePEc:wly:econjl:v:126:y:2016:i:596:p:f136-f183
    DOI: 10.1111/ecoj.12340
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    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • D1 - Microeconomics - - Household Behavior

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