Do transfers generate local economy effects?
The paper examines local economy effects of social transfers, by focusing on food consumption and asset holdings of non-eligible households in rural Mexico following the introduction of PROGRESA in 1997. The quasi-experimental nature of the evaluation data collected for the purposes of evaluating the impact of PROGRESA enables the quantification of this impact. In the paper we compare welfare indicators among noneligible households in treatment areas and control areas. The analysis finds that noneligible households in treatment areas show significantly higher levels of food consumption and asset holdings following the introduction of PROGRESA, compared to non-eligible households in control areas. These results are interpreted to suggest that transfers in poor rural areas in Mexico enable agents to interact more strategically such that non-beneficiaries, as well as beneficiaries, reap consumption and production advantages.
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- Hoddinott, John & Skoufias, Emmanuel, 2004.
"The Impact of PROGRESA on Food Consumption,"
Economic Development and Cultural Change,
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Economics Series Working Papers
106, University of Oxford, Department of Economics.
- Barrett, Christopher B., 2003.
"Rural Poverty Dynamics: Development Policy Implications,"
127243, Cornell University, Department of Applied Economics and Management.
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- Paul J. Gertler & Sebastian W. Martinez & Marta Rubio-Codina, 2012.
"Investing Cash Transfers to Raise Long-Term Living Standards,"
American Economic Journal: Applied Economics,
American Economic Association, vol. 4(1), pages 164-92, January.
- Gertler, Paul & Martinez, Sebastian & Rubio-Codina, Marta, 2006. "Investing cash transfers to raise long term living standards," Policy Research Working Paper Series 3994, The World Bank.
- Laura B. Rawlings, 2005. "Evaluating the Impact of Conditional Cash Transfer Programs," World Bank Research Observer, World Bank Group, vol. 20(1), pages 29-55.
- Barrett, Christopher B. & McPeak, John G., 2003. "Poverty Traps and Safety Nets," Working Papers 127808, Cornell University, Department of Applied Economics and Management.
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