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From protection to production: The productive impacts of cash transfers and health insurance in Ghana

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  • Tabe-Ojong, Martin Paul
  • Rukundo, Emmanuel Nshakira

Abstract

We study the productive and psychological effects of LEAP 1000, a program integrating cash transfer and health insurance in Ghana. We assess impacts on livestock ownership and commercialisation, household investments (including savings) and time preferences as a measure of behavioural changes. Using a two-wave panel and applying difference-in-differences estimations, we find that the program significantly increased livestock ownership, especially small ruminant animals, and commercialisation. There are positive effects on households' investments in durable goods, starting businesses and reduction of food expenditure as a share of household budgets. Further examination of potential mechanisms reveals improvements in patience, increased future orientation, sense of happiness and social support. Additional triple difference regressions confirm that these behavioural changes contribute to program effectiveness.

Suggested Citation

  • Tabe-Ojong, Martin Paul & Rukundo, Emmanuel Nshakira, 2024. "From protection to production: The productive impacts of cash transfers and health insurance in Ghana," Ruhr Economic Papers 1102, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:311186
    DOI: 10.4419/96973280
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    References listed on IDEAS

    as
    1. Ridho Al Izzati & Daniel Suryadarma & Asep Suryahadi, 2023. "Do short-term unconditional cash transfers change behaviour and preferences? evidence from Indonesia," Oxford Development Studies, Taylor & Francis Journals, vol. 51(3), pages 291-306, July.
    2. Harold Alderman & Ruslan Yemtsov, 2014. "How Can Safety Nets Contribute to Economic Growth?," The World Bank Economic Review, World Bank, vol. 28(1), pages 1-20.
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    Keywords

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    JEL classification:

    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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