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More Calories or More Diversity? An econometric evaluation of the impact of the PROGRESA and PROCAMPO transfer programmes on food security in rural Mexico

Author

Listed:
  • Marta Ruiz-Arranz
  • Benjamin Davis

    (Agricultural and Development Economics Division, Food and Agriculture Organization)

  • Marco Stampini
  • Paul Winters
  • Sudhanshu Handa

Abstract

This paper examines the PROGRESA and PROCAMPO cash transfer programs in Mexico and evaluates their impact on household food security and nutrition. These two programs differ in their gender targeting, with PROGRESA aimed at women and PROCAMPO generally at men, and program conditionality, with PROGRESA linked to development of human capital of children in the households and PROCAMPO linked to agricultural production. We try to answer the following questions. First, can a cash transfer program geared to agricultural production have the same impact on food security as a cash transfer program geared to consumption through purchases? Second, do eligibility requirements (gender of the recipient) and conditionality in the provision of cash transfers matter? Our results suggest that, contrary to conventional wisdom, men do not just drink away cash transfers and that monetary payments linked to a productive asset –land- can have as large or larger impact on food security as cash transfers not linked to a productive asset. We show that both programs boost total food consumption and caloric intake in similar proportions. However, PROCAMPO has a larger impact on meat and vegetables consumption and PROGRESA on the other food category. Furthermore, increased food security is achieved through different channels: PROGRESA through purchases while PROCAMPO through investment in home production. We also find that cash transfers linked to information on nutrition and health increase food diversity. PROCAMPO households that also receive PROGRESA, and the information that goes with it, are more likely to be eating a more varied diet than households that get PROCAMPO only. All this suggests that the choice of program design in terms of food security depends on objectives beyond total food consumption and caloric intake, such as consumption from specific food categories, food diversity, investment in agricultural production, and the degree of access to retail food markets.

Suggested Citation

  • Marta Ruiz-Arranz & Benjamin Davis & Marco Stampini & Paul Winters & Sudhanshu Handa, 2002. "More Calories or More Diversity? An econometric evaluation of the impact of the PROGRESA and PROCAMPO transfer programmes on food security in rural Mexico," Working Papers 02-09, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
  • Handle: RePEc:fao:wpaper:0209
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    References listed on IDEAS

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    1. James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters,in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492 National Bureau of Economic Research, Inc.
    2. Pitt, Mark M, 1983. "Food Preferences and Nutrition in Rural Bangladesh," The Review of Economics and Statistics, MIT Press, vol. 65(1), pages 105-114, February.
    3. Subramanian, Shankar & Deaton, Angus, 1996. "The Demand for Food and Calories," Journal of Political Economy, University of Chicago Press, vol. 104(1), pages 133-162, February.
    4. Duncan Thomas, 1990. "Intra-Household Resource Allocation: An Inferential Approach," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 635-664.
    5. Strauss, John, 1986. "Does Better Nutrition Raise Farm Productivity?," Journal of Political Economy, University of Chicago Press, vol. 94(2), pages 297-320, April.
    6. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 38(2), pages 112-134.
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    Cited by:

    1. Marie Gaarder & Amanda Glassman & Jessica Todd, 2010. "Conditional cash transfers and health: unpacking the causal chain," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 2(1), pages 6-50.
    2. Cesar Martinelli & Susan W. Parker, 2003. "Do School Subsidies Promote Human Capital Accumulation among the Poor?," Working Papers 0306, Centro de Investigacion Economica, ITAM.

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