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Do Cash Transfers Trigger Investment? Evidence for Peru

Author

Listed:
  • Cristina Cirillo

    (University of Florence and University of Trento)

  • Giorgia Giovannetti

    (University of Florence, European University Institute and Luca D'Agliano Center)

Abstract

This paper provides an impact evaluation of the Juntos programme on households' decision to invest in livestock and agricultural and non-agricultural assets used for income generating activities. Using Propensity Score Matching and Difference in Difference techniques, we show: i) that beneficiaries are significantly more likely to invest in productive assets and activities with respect to non-beneficiaries; ii) that Juntos is more likely to relax liquidity contraints rather than to be used as an insurance for risky investments; iii) that the program benefits the poor but not the poorest of the poor. Duration and transfers regularity do not produce significant differences between groups of beneficiaries. However, results show a sustained impact of the programme over time.

Suggested Citation

  • Cristina Cirillo & Giorgia Giovannetti, 2018. "Do Cash Transfers Trigger Investment? Evidence for Peru," Development Working Papers 433, Centro Studi Luca d'Agliano, University of Milano.
    • Handle: RePEc:csl:devewp:433
    as

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    References listed on IDEAS

    as
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    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate

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