Cash Transfers, Food Prices, and Nutrition Impacts on Nonbeneficiary Children

87 Pages Posted: 27 Mar 2018 Last revised: 11 Dec 2019

See all articles by Deon Filmer

Deon Filmer

World Bank; World Bank - Development Research Group (DECRG)

Jed Friedman

World Bank - Development Research Group (DECRG); World Bank Group

Eeshani Kandpal

World Bank

Junko Onishi

World Bank

Date Written: March 26, 2018

Abstract

Based on a randomized evaluation, the paper shows that a household-targeted Philippine cash transfer program significantly raised the local price of key foods relevant for child nutritional status. This shift in prices increased stunting among young nonbeneficiary children by 34 percent (11 percentage points). Price and stunting effects increase in program saturation; at median saturation, the village income shock is 15 percent. These effects persist 2.5 years after program introduction. The authors confirm the price patterns in their experimental sample against price information from nationally-representative household expenditure surveys across the 6-year rollout of the program. Failing to consider such general equilibrium effects may overstate the net benefits of targeted cash transfers. In areas where targeting of social programs covers a large proportion of the population, offering the program on a universal basis may avoid such long-lasting negative impacts at moderate additional cost.

Keywords: Disability, Access of Poor to Social Services, Economic Assistance, Services & Transfers to Poor, Early Child and Children & #39, Early Child and Children's Health, Reproductive Health, Health Care Services Industry, Nutrition, Transport Services

Suggested Citation

Filmer, Deon and Friedman, Jed Arnold and Kandpal, Eeshani and Onishi, Junko, Cash Transfers, Food Prices, and Nutrition Impacts on Nonbeneficiary Children (March 26, 2018). World Bank Policy Research Working Paper No. 8377. Available at SSRN: https://ssrn.com/abstract=3150090

Deon Filmer (Contact Author)

World Bank ( email )

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World Bank - Development Research Group (DECRG)

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
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Jed Arnold Friedman

World Bank - Development Research Group (DECRG)

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

World Bank Group ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

Eeshani Kandpal

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Junko Onishi

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

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