Testing Paternalism : Cash versus In-Kind Transfers

@inproceedings{Cunha2014TestingP,
  title={Testing Paternalism : Cash versus In-Kind Transfers},
  author={Jesse M. Cunha},
  year={2014}
}
Welfare programs are often implemented in-kind to promote outcomes that might not be realized under cash transfers. This paper tests whether such paternalistically motivated transfers are justified compared to cash, using a randomized controlled trial of Mexico’s food assistance program. In relation to total food consumption, the in-kind transfer was infra-marginal and nondistorting. However, the transfer contained ten food items, and there was large variation in the extent to which individual… CONTINUE READING

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