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Where does the money go? Assessing the expenditure and income effects of the Philippines' Conditional Cash Transfer Program

Author

Listed:
  • Stella Luz A. Quimbo

    (School of Economics, University of the Philippines Diliman)

  • Joseph J. Capuno

    (School of Economics, University of the Philippines Diliman)

  • Aleli D. Kraft

    (School of Economics, University of the Philippines Diliman)

  • Rhea Molato

    (School of Economics, University of the Philippines Diliman)

  • Carlos Tan, Jr.

    (School of Economics, University of the Philippines Diliman)

Abstract

Evaluation studies on conditional cash transfers (CCT) in the Philippines found small if not insignificantly different from zero effects on household consumption. We use propensity score matching to examine how recipients made use of the money they received, taking into account possible changes in recipient behavior. We find evidence of crowding in—CCT households receive higher transfers from other domestic sources as a positive spillover from becoming CCT beneficiaries Poor CCT households tend to lower their dissavings while non-poor beneficiaries become less indebted. We also find evidence of lower income, lower wages, and lower work-related expenses.

Suggested Citation

  • Stella Luz A. Quimbo & Joseph J. Capuno & Aleli D. Kraft & Rhea Molato & Carlos Tan, Jr., 2015. "Where does the money go? Assessing the expenditure and income effects of the Philippines' Conditional Cash Transfer Program," UP School of Economics Discussion Papers 201502, University of the Philippines School of Economics.
  • Handle: RePEc:phs:dpaper:201502
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    File URL: http://www.econ.upd.edu.ph/dp/index.php/dp/article/view/1472/
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    References listed on IDEAS

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    More about this item

    Keywords

    Conditional cash transfers; household income and consumption; Philippines;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs

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