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Household Responses to cash Transfers

Listed author(s):
  • Denni Tommasi

This paper estimates a collective model of the household and investigates how parents reach decisions to allocate household resources. Using data from PROGRESA, we test the restrictions of collective rationality on a large variety of specifications and show that, contrary to previous results, this modeling approach cannot rationalize the household decision process. We provide some evidence that the observed inefficiency is driven by the group receiving the cash transfers. These results are consistent with the idea that a possible indirect effect of CCT programs may be to enhance disagreements between the spouses which trigger an inefficient allocation of their resources.

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File URL: https://dipot.ulb.ac.be/dspace/bitstream/2013/229749/3/2016-20-TOMMASI-hosehold.pdf
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Paper provided by ULB -- Universite Libre de Bruxelles in its series Working Papers ECARES with number ECARES 2016-20.

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Length: 52 p.
Date of creation: May 2016
Publication status: Published by:
Handle: RePEc:eca:wpaper:2013/229749
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