Cash transfer programs with income multipliers: PROCAMPO in Mexico

Cash transfer programs induce multiplier effects when recipients put the money they receive to work to generate additional income. The ultimate income effects are multiples of the amounts transferred. This paper analyzes the PROCAMPO program in Mexico, which was introduced to compensate farmers for...

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Detalles Bibliográficos
Autores principales: Sadoulet, Elisabeth, Davis, Benjamin, De Janvry, Alain
Formato: Brief
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2001
Materias:
Acceso en línea:https://hdl.handle.net/10568/155630
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author Sadoulet, Elisabeth
Davis, Benjamin
De Janvry, Alain
author_browse Davis, Benjamin
De Janvry, Alain
Sadoulet, Elisabeth
author_facet Sadoulet, Elisabeth
Davis, Benjamin
De Janvry, Alain
author_sort Sadoulet, Elisabeth
collection Repository of Agricultural Research Outputs (CGSpace)
description Cash transfer programs induce multiplier effects when recipients put the money they receive to work to generate additional income. The ultimate income effects are multiples of the amounts transferred. This paper analyzes the PROCAMPO program in Mexico, which was introduced to compensate farmers for the anticipated negative effect of the North American Free Trade Agreement (NAFTA) on the price of basic crops. The transfer rules and the timing of the panel data collected allow unique control of biases in this impact analysis. We find that the multiplier among ejido sector recipients is in the range of 1.5 to 2.6. Multipliers are higher for medium and large farm households, low numbers of adults in the household, nonindigenous backgrounds, and households located in the Center and Gulf regions. High multipliers reflect marginal income opportunities that were unrealized due to liquidity constraints that the transfers eased. Opportunities came from the asset endowments that these households have, particularly irrigated land, and these opportunities were enhanced by access to technical assistance.
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spelling CGSpace1556302025-04-08T18:31:14Z Cash transfer programs with income multipliers: PROCAMPO in Mexico Sadoulet, Elisabeth Davis, Benjamin De Janvry, Alain income cash transfers subsidies prices social protection Cash transfer programs induce multiplier effects when recipients put the money they receive to work to generate additional income. The ultimate income effects are multiples of the amounts transferred. This paper analyzes the PROCAMPO program in Mexico, which was introduced to compensate farmers for the anticipated negative effect of the North American Free Trade Agreement (NAFTA) on the price of basic crops. The transfer rules and the timing of the panel data collected allow unique control of biases in this impact analysis. We find that the multiplier among ejido sector recipients is in the range of 1.5 to 2.6. Multipliers are higher for medium and large farm households, low numbers of adults in the household, nonindigenous backgrounds, and households located in the Center and Gulf regions. High multipliers reflect marginal income opportunities that were unrealized due to liquidity constraints that the transfers eased. Opportunities came from the asset endowments that these households have, particularly irrigated land, and these opportunities were enhanced by access to technical assistance. 2001 2024-10-24T12:42:22Z 2024-10-24T12:42:22Z Brief https://hdl.handle.net/10568/155630 en Open Access application/pdf International Food Policy Research Institute Sadoulet, Elisabeth; Davis, Benjamin; de Janvry, Alain. 2001. Cash transfer programs with income multipliers: PROCAMPO in Mexico. FCND Discussion Paper Brief 99. https://hdl.handle.net/10568/155630
spellingShingle income
cash transfers
subsidies
prices
social protection
Sadoulet, Elisabeth
Davis, Benjamin
De Janvry, Alain
Cash transfer programs with income multipliers: PROCAMPO in Mexico
title Cash transfer programs with income multipliers: PROCAMPO in Mexico
title_full Cash transfer programs with income multipliers: PROCAMPO in Mexico
title_fullStr Cash transfer programs with income multipliers: PROCAMPO in Mexico
title_full_unstemmed Cash transfer programs with income multipliers: PROCAMPO in Mexico
title_short Cash transfer programs with income multipliers: PROCAMPO in Mexico
title_sort cash transfer programs with income multipliers procampo in mexico
topic income
cash transfers
subsidies
prices
social protection
url https://hdl.handle.net/10568/155630
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