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Externality and Behavioural Change Effects of a Non-randomised CCT Programme: Heterogeneous Impact on the Demand for Health and Education

  • Rafael Perez Ribas
  • Fabio Veras Soares
  • Clarissa Teixeira
  • Elydia Silva
  • Guilherme Hirata

This paper investigates the impact of the pilot phase of Paraguay’s conditional cash transfer programme, Tekoporã, on the demand for healthcare and education, and how much of this impact was due to the cash transfers and/or due to changes in behaviour/preferences, possibly as an effect of other, non-monetary programme components such as the conditionalities and family support visits. It also explores the presence of externalities effects through a decomposition of the average treatment effect on the treated (ATT) into participation and externality effect. This decomposition was possible thanks to the use of two distinct comparison groups, one within the village and possibly exposed to the externality, and another in a different district not affected by the programme. The results indicate that the programme was successful in improving children’s attendance at school and increasing visits to the health centres. They also suggest that the positive impacts do not reach non-beneficiary families (no externality effect). In the pilot phase, with no conditionality enforcement in place, the role of conditionality and social worker visits is not yet clear. No differential effect was found for those who were aware of the conditionalities and/or were visited by social workers, although the message of the importance of education and healthcare somehow did reach the households, altering their preferences towards a greater consumption of healthcare and education services.

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Paper provided by PEP-PIERI in its series Working Papers PIERI with number 2011-19.

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Date of creation: 2011
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Handle: RePEc:lvl:piercr:2011-19
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  1. Angelucci, Manuela & De Giorgi, Giacomo, 2006. "Indirect Effects of an Aid Program: The Case of Progresa and Consumption," IZA Discussion Papers 1955, Institute for the Study of Labor (IZA).
  2. Manuela Angelucci & Giacomo De Giorgi, 2009. "Indirect Effects of an Aid Program: How Do Cash Transfers Affect Ineligibles' Consumption?," American Economic Review, American Economic Association, vol. 99(1), pages 486-508, March.
  3. Jeffrey M. Wooldridge, 2002. "Inverse probability weighted M-estimators for sample selection, attrition and stratification," CeMMAP working papers CWP11/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  4. Wooldridge, Jeffrey M. & Imbens, Guido, 2009. "Recent Developments in the Econometrics of Program Evaluation," Scholarly Articles 3043416, Harvard University Department of Economics.
  5. Keisuke Hirano & Guido W. Imbens & Geert Ridder, 2000. "Efficient Estimation of Average Treatment Effects Using the Estimated Propensity Score," NBER Technical Working Papers 0251, National Bureau of Economic Research, Inc.
  6. Jere R. Behrman & John Hoddinott, 2005. "Programme Evaluation with Unobserved Heterogeneity and Selective Implementation: The Mexican "PROGRESA" Impact on Child Nutrition," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 67(4), pages 547-569, 08.
  7. Manuela Angelucci & Giacomo De Giorgi & Marcos A. Rangel & Imran Rasul, 2009. "Family Networks and School Enrolment: Evidence from a Randomized Social Experiment," NBER Working Papers 14949, National Bureau of Economic Research, Inc.
  8. Jeffrey M. Wooldridge, 2004. "Inverse probability weighted estimation for general missing data problems," CeMMAP working papers CWP05/04, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  9. Emmanuel Saez & Esther Duflo, 2003. "The role of information and social interactions in retirement plan decisions: Evidence from a randomized experiment," Framed Field Experiments 00141, The Field Experiments Website.
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