Beneficiary views on cash and in-kind payments: Evidence from Ethiopia's Productive Safety Net Programme

Economists often default to the assumption that cash is always preferable to an in-kind transfer. Do beneficiaries feel the same way? This paper addresses this issue using longitudinal household data from Ethiopia, where a large-scale social safety net intervention (PSNP) operates. Even though most...

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Autores principales: Hirvonen, Kalle, Hoddinott, John F.
Formato: Journal Article
Lenguaje:Inglés
Publicado: World Bank 2021
Materias:
Acceso en línea:https://hdl.handle.net/10568/142931
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author Hirvonen, Kalle
Hoddinott, John F.
author_browse Hirvonen, Kalle
Hoddinott, John F.
author_facet Hirvonen, Kalle
Hoddinott, John F.
author_sort Hirvonen, Kalle
collection Repository of Agricultural Research Outputs (CGSpace)
description Economists often default to the assumption that cash is always preferable to an in-kind transfer. Do beneficiaries feel the same way? This paper addresses this issue using longitudinal household data from Ethiopia, where a large-scale social safety net intervention (PSNP) operates. Even though most payments are made in cash, and even though the (temporal) transaction costs associated with food payments are higher than payments received as cash, most beneficiaries stated that they prefer their payments only or partly in food. Higher food prices induce shifts in stated preferences toward in-kind transfers. More food-secure households, those closer to food markets and to financial services are more likely to prefer cash. Though shifts occur, the stated preference for food is dominant: In no year do more than 17 percent of households prefer only cash. There is suggestive evidence that stated preferences for food are also driven by self-control concerns.
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spelling CGSpace1429312025-12-08T10:11:39Z Beneficiary views on cash and in-kind payments: Evidence from Ethiopia's Productive Safety Net Programme Hirvonen, Kalle Hoddinott, John F. programmes households social protection food access food transfer food security cash transfers cash flow food aid Economists often default to the assumption that cash is always preferable to an in-kind transfer. Do beneficiaries feel the same way? This paper addresses this issue using longitudinal household data from Ethiopia, where a large-scale social safety net intervention (PSNP) operates. Even though most payments are made in cash, and even though the (temporal) transaction costs associated with food payments are higher than payments received as cash, most beneficiaries stated that they prefer their payments only or partly in food. Higher food prices induce shifts in stated preferences toward in-kind transfers. More food-secure households, those closer to food markets and to financial services are more likely to prefer cash. Though shifts occur, the stated preference for food is dominant: In no year do more than 17 percent of households prefer only cash. There is suggestive evidence that stated preferences for food are also driven by self-control concerns. 2021-05-01 2024-05-22T12:11:20Z 2024-05-22T12:11:20Z Journal Article https://hdl.handle.net/10568/142931 en https://hdl.handle.net/10986/33261 https://hdl.handle.net/10568/145532 https://doi.org/10.1111/dpr.12515 Open Access World Bank Hirvonen, Kalle; and Hoddinott, John F. 2021. Beneficiary views on cash and in-kind payments: Evidence from Ethiopia's Productive Safety Net Programme. World Bank Economic Review 35(2): 398–413. https://doi.org/10.1093/wber/lhaa002
spellingShingle programmes
households
social protection
food access
food transfer
food security
cash transfers
cash flow
food aid
Hirvonen, Kalle
Hoddinott, John F.
Beneficiary views on cash and in-kind payments: Evidence from Ethiopia's Productive Safety Net Programme
title Beneficiary views on cash and in-kind payments: Evidence from Ethiopia's Productive Safety Net Programme
title_full Beneficiary views on cash and in-kind payments: Evidence from Ethiopia's Productive Safety Net Programme
title_fullStr Beneficiary views on cash and in-kind payments: Evidence from Ethiopia's Productive Safety Net Programme
title_full_unstemmed Beneficiary views on cash and in-kind payments: Evidence from Ethiopia's Productive Safety Net Programme
title_short Beneficiary views on cash and in-kind payments: Evidence from Ethiopia's Productive Safety Net Programme
title_sort beneficiary views on cash and in kind payments evidence from ethiopia s productive safety net programme
topic programmes
households
social protection
food access
food transfer
food security
cash transfers
cash flow
food aid
url https://hdl.handle.net/10568/142931
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AT hoddinottjohnf beneficiaryviewsoncashandinkindpaymentsevidencefromethiopiasproductivesafetynetprogramme