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Structuring cash transfers: cash flow preferences, seasonality, and financial decisions in rural Kenya

Author

Listed:
  • Kansikas, Carolina

    (University of Warwick)

  • Mani, Anandi

    (University of Oxford)

  • Niehaus, Paul

    (UC San Diego)

Abstract

We examine the preferences of low-income households in Kenya over the structure of unconditional cash transfers. Most preferred lumpy transfers, and some preferred deferred receipt—in contrast to the typical structures of safety-net programs, but consistent with evidence on the financial challenges of poverty. Turning to consequences, receiving transfers later in the year raised income 1.5 years later— but willingness to defer receipt was sensitive to small changes in cash flow around the time of decision-making. Taken together, these results illustrate how adapting cash transfer design to the decision-making environment of those in poverty could improve financial choices and outcomes.

Suggested Citation

  • Kansikas, Carolina & Mani, Anandi & Niehaus, Paul, 2025. "Structuring cash transfers: cash flow preferences, seasonality, and financial decisions in rural Kenya," The Warwick Economics Research Paper Series (TWERPS) 1574, University of Warwick, Department of Economics.
    • Handle: RePEc:wrk:warwec:1574
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    File URL: https://warwick.ac.uk/fac/soc/economics/research/workingpapers/2025/twerp_1574-_kansikas.pdf
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    References listed on IDEAS

    as
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    5. Pascaline Dupas & Jonathan Robinson, 2013. "Savings Constraints and Microenterprise Development: Evidence from a Field Experiment in Kenya," American Economic Journal: Applied Economics, American Economic Association, vol. 5(1), pages 163-192, January.
    6. Marianna Battaglia & Selim Gulesci & Andreas Madestam, 2024. "Repayment Flexibility and Risk Taking: Experimental Evidence from Credit Contracts," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 91(5), pages 2635-2675.
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    Keywords

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    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy

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