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Structuring cash transfers: cash flow preferences, seasonality, and financial decisions in rural Kenya

Author

Listed:
  • Kansikas, Carolina

    (University of Warwick)

  • Mani, Anandi

    (University of Oxford)

  • Niehaus, Paul

    (University of California, San Diego and NBER)

Abstract

We examine the preferences of low-income households in Kenya over the structure of unconditional cash transfers. Most preferred lumpy transfers, and some preferred deferred receipt—in contrast to the typical structures of safety-net programs, but consistent with evidence on the financial challenges of poverty. Turning to consequences, receiving transfers later in the year raised income 1.5 years later— but willingness to defer receipt was sensitive to small changes in cash flow around the time of decision-making. Taken together, these results illustrate how adapting cash transfer design to the decision-making environment of those in poverty could improve financial choices and outcomes.

Suggested Citation

  • Kansikas, Carolina & Mani, Anandi & Niehaus, Paul, 2025. "Structuring cash transfers: cash flow preferences, seasonality, and financial decisions in rural Kenya," CAGE Online Working Paper Series 769, Competitive Advantage in the Global Economy (CAGE).
    • Handle: RePEc:cge:wacage:769
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    File URL: https://warwick.ac.uk/fac/soc/economics/research/centres/cage/manage/publications/wp769.2025.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

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    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy

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