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Social Networks and Risk Management in Ghana’s Livelihood Empowerment Against Poverty Programme

Author

Listed:
  • Silvio Daidone
  • Sudhanshu Handa
  • Benjamin Davis
  • Mike Park
  • Robert D. Osei
  • Isaac Osei-Akoto

Abstract

Understanding how household consumption, investment and saving decisions respond to transfer income is critical to public policy. In developing countries, saving or otherwise investing in the future is difficult for poor households which often struggle to meet basic expenses, while high debt burdens are also obstacles to saving. Poor households in rural areas of developing countries typically manage risk via informal exchanges or transfers among extended family, friends and neighbours. Motivated by the community dynamics observed in the qualitative assessment of LEAP and the unpredictable and lumpy payments made by the programme during the evaluation period, the main interest of this paper is to assess within a quantitative framework the impact of LEAP on household risk reduction strategies via reintegration in, and strengthening of, social networks and reduction of debt exposure.

Suggested Citation

  • Silvio Daidone & Sudhanshu Handa & Benjamin Davis & Mike Park & Robert D. Osei & Isaac Osei-Akoto, 2015. "Social Networks and Risk Management in Ghana’s Livelihood Empowerment Against Poverty Programme," Papers inwopa781, Innocenti Working Papers.
  • Handle: RePEc:ucf:inwopa:inwopa781
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    References listed on IDEAS

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    1. Daniel Gilligan & John Hoddinott & Alemayehu Seyoum Taffesse, 2009. "The Impact of Ethiopia's Productive Safety Net Programme and its Linkages," Journal of Development Studies, Taylor & Francis Journals, vol. 45(10), pages 1684-1706.
    2. Chambers, Valrie & Spencer, Marilyn, 2008. "Does changing the timing of a yearly individual tax refund change the amount spent vs. saved?," Journal of Economic Psychology, Elsevier, vol. 29(6), pages 856-862, December.
    3. Sudhanshu Handa & David Seidenfeld & Benjamin Davis & Gelson Tembo & Zambia Cash Transfer Evaluation Team, 2014. "Are Cash Transfers a Silver Bullet? Evidence from the Zambian Child Grant," Papers inwopa731, Innocenti Working Papers.
    4. Pedro Albarran & Orazio P. Attanasio, 2003. "Limited Commitment and Crowding out of Private Transfers: Evidence from a Randomised Experiment," Economic Journal, Royal Economic Society, vol. 113(486), pages 77-85, March.
    5. James Heckman & Hidehiko Ichimura & Jeffrey Smith & Petra Todd, 1998. "Characterizing Selection Bias Using Experimental Data," Econometrica, Econometric Society, vol. 66(5), pages 1017-1098, September.
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    7. Ho, Daniel E. & Imai, Kosuke & King, Gary & Stuart, Elizabeth A., 2007. "Matching as Nonparametric Preprocessing for Reducing Model Dependence in Parametric Causal Inference," Political Analysis, Cambridge University Press, vol. 15(03), pages 199-236, June.
    8. Katia Covarrubias & Benjamin Davis & Paul Winters, 2012. "From protection to production: productive impacts of the Malawi Social Cash Transfer scheme," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 4(1), pages 50-77, March.
    9. Juan Jose Diaz & Sudhanshu Handa, 2006. "An Assessment of Propensity Score Matching as a Nonexperimental Impact Estimator: Evidence from Mexico’s PROGRESA Program," Journal of Human Resources, University of Wisconsin Press, vol. 41(2).
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    Keywords

    cash transfers; debt management; income household; social development policies; social protection;

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