Household Response to Income Changes : Evidence from an Unconditional Cash Transfer Program in Kenya ∗

@inproceedings{Haushofer2013HouseholdRT,
  title={Household Response to Income Changes : Evidence from an Unconditional Cash Transfer Program in Kenya ∗},
  author={Johannes Haushofer and Jeremy J. Shapiro},
  year={2013}
}
This paper studies the response of poor rural households in rural Kenya to large temporary income changes. Using a randomized controlled trial, households were randomly assigned to receive unconditional cash transfers of at least USD 404 from the NGO GiveDirectly. We designed the experiment to address several long-standing questions in the economics literature: what is the shape of households’ Engel curves? Do household members effectively pool income? Are there constraints to savings? Do… CONTINUE READING

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