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Investigate on Moral Hazard: The Impact of Cash Transfer on Household Spending Behaviour

In: Proceedings of the International conference of Economics Business and Economics Education Science (ICE-BEES-24)

Author

Listed:
  • Bintang Satrio Wibowo

    (Universitas Negeri Semarang, Department of Economics)

  • Ahmad Syahrul Fauzi

    (Universitas Negeri Semarang, Department of Economics)

  • Deky Aji Suseno

    (Universitas Negeri Semarang, Department of Economics)

  • Shanty Oktavilia

    (Universitas Negeri Semarang, Department of Economics)

  • Fredericho Mego Sundoro

    (Universitas Negeri Semarang, Department of Economics)

  • Fawwaz Jaerawibawa

    (Universitas Negeri Semarang, Department of Economics)

  • Rahma Puspita Rahayu

    (Universitas Negeri Semarang, Department of Economics)

  • Nur Fadhila

    (Universitas Negeri Semarang, Department of Economics)

Abstract

This study aims to examine the effects of cash assistance on consumption behaviour patterns in Indonesia, using the Indonesia Family Life Survey (IFLS) as the primary data source. The study also seeks to determine whether there are deviations in consumption behaviour when individuals receive cash assistance interventions. To address this, a multiple linear regression analysis using the OLS dummy variable method was employed. The results of this study reveal that cash assistance interventions have a positive impact on primary consumption and total consumption among the population. Furthermore, additional findings indicate that cash assistance also has a positive effect on tertiary consumption, such as cigarettes and alcohol. The increase in tertiary consumption suggests the presence of moral hazard among cash assistance recipients.

Suggested Citation

  • Bintang Satrio Wibowo & Ahmad Syahrul Fauzi & Deky Aji Suseno & Shanty Oktavilia & Fredericho Mego Sundoro & Fawwaz Jaerawibawa & Rahma Puspita Rahayu & Nur Fadhila, 2024. "Investigate on Moral Hazard: The Impact of Cash Transfer on Household Spending Behaviour," Advances in Economics, Business and Management Research, in: Kris Brantas Abiprayu & Avi Budi Setiawan (ed.), Proceedings of the International conference of Economics Business and Economics Education Science (ICE-BEES-24), pages 179-186, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-522-5_13
    DOI: 10.2991/978-94-6463-522-5_13
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