Cash Transfers in an Epidemic Context : The Interaction of Formal and Informal Support in Rural Malawi

This paper investigates the short-run consumption expenditure dynamics and the interaction of public and private arrangements of ultra-poor and labor-constrained households in Malawi using an original dataset from the Mchinjii social cash transfer...

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Bibliographic Details
Main Authors: Strobbe, Francesco, Miller, Candace
Format: Policy Research Working Paper
Language:English
Published: 2012
Subjects:
TAX
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111004141054
http://hdl.handle.net/10986/3588
id okr-10986-3588
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic AGRICULTURAL INPUTS
AGRICULTURAL OUTPUT
AMOUNT OF RISK
ASYMMETRIC INFORMATION
BENEFICIARIES
BORROWER
BORROWING
CAPITAL MARKETS
CASH TRANSFER
CASH TRANSFERS
CHILD POVERTY
CHRONIC POVERTY
COLLATERAL
CONSUMPTION EXPENDITURE
CONSUMPTION EXPENDITURES
CONSUMPTION SMOOTHING
CONTRACT ENFORCEMENT
COPING BEHAVIORS
CREDIT MARKET
CREDIT MARKET CONSTRAINTS
CREDIT TRANSACTIONS
CROP YIELDS
CROWDING OUT
DEVELOPING COUNTRIES
DEVELOPMENT ECONOMICS
DROUGHT
DURABLE
ECONOMIC CONDITIONS
ECONOMIC GROWTH
ECONOMIC SHOCKS
EMPLOYMENT
ENFORCEABILITY
ENFORCEABILITY OF CONTRACTS
EXTENDED FAMILIES
FOOD AID
FOOD CONSUMPTION
FOOD CONSUMPTION EXPENDITURES
FOOD DISTRIBUTION
FOOD INSECURITY
FOOD ITEMS
FOOD POLICY
FOOD PRICES
FOOD SECURITY
FREE FOOD
GOVERNMENT INTERVENTIONS
GROSS DOMESTIC PRODUCT
HOUSEHOLD COMPOSITION
HOUSEHOLD CONSUMPTION
HOUSEHOLD HEAD
HOUSEHOLD HEADS
HOUSEHOLD INCOME
HOUSEHOLD LEVEL
HOUSEHOLD SIZE
HOUSEHOLD SURVEY
HOUSEHOLD SURVEYS
HOUSEHOLD TRANSFERS
HUMAN DEVELOPMENT
HUMAN DEVELOPMENT INDEX
HUMAN RESOURCES
IDIOSYNCRATIC RISK
IDIOSYNCRATIC SHOCKS
INCOME
INCOME INEQUALITY
INCOME SHOCKS
INFLATION
INFLATION RATE
INFORMAL INSURANCE
INFORMAL LOANS
INFORMAL SUPPORT
INSTRUMENT
INSURANCE MARKETS
INSURANCE SCHEMES
INTERNATIONAL BANK
INVESTING
LABOR MARKET
LABOUR
LEGAL FRAMEWORKS
LIVESTOCK OWNERSHIP
LOAN
LOCAL CURRENCY
MALNUTRITION
MEDICAID
MORTALITY
NATIONAL POVERTY
NATIONAL POVERTY LINE
NEGATIVE SHOCKS
OLD AGE
OLD AGE PENSIONS
PARTIAL RISK
POLITICAL ECONOMY
POOR
POOR HEALTH
POOR HOUSEHOLD
POOR HOUSEHOLDS
POVERTY LINE
POVERTY REDUCTION
PRIVATE INSURANCE
PRIVATE TRANSFERS
PROTECTION MECHANISMS
PROTECTION POLICIES
PROTECTION POLICY
PROVISION OF ASSISTANCE
PUBLIC INTERVENTION
PUBLIC INTERVENTIONS
PUBLIC PENSION
PUBLIC TRANSFER
PUBLIC TRANSFERS
REMITTANCE
REMITTANCES
REPAYMENT
RISK SHARING
RISK SHARING ARRANGEMENTS
RURAL
RURAL AREAS
RURAL COMMUNITY
RURAL CREDIT
RURAL CREDIT MARKET
RURAL CREDIT MARKETS
RURAL HOUSEHOLDS
RURAL VILLAGES
SAFETY
SAFETY NET
SAFETY NETS
SHOCK
SHOCKS TO INCOME
SMALLHOLDER FARMING
SOCIAL ASSISTANCE
SOCIAL INSURANCE
SOCIAL PROTECTION
SOCIAL SAFETY NET
SOCIAL SAFETY NETS
SOCIAL SECURITY
SOCIAL TRANSFER
SOCIAL WELFARE
TARGETING
TAX
TRADING
TRANSFER BENEFICIARIES
TRANSFER PROGRAM
TRANSFER PROGRAMS
TRANSFER RECIPIENT
TRANSFER RECIPIENTS
TRANSITORY SHOCKS
ULTRA POOR
VALUABLE ASSETS
VILLAGE ECONOMIES
VULNERABLE PEOPLE
WEALTH EFFECT
WORKING CONDITIONS
spellingShingle AGRICULTURAL INPUTS
AGRICULTURAL OUTPUT
AMOUNT OF RISK
ASYMMETRIC INFORMATION
BENEFICIARIES
BORROWER
BORROWING
CAPITAL MARKETS
CASH TRANSFER
CASH TRANSFERS
CHILD POVERTY
CHRONIC POVERTY
COLLATERAL
CONSUMPTION EXPENDITURE
CONSUMPTION EXPENDITURES
CONSUMPTION SMOOTHING
CONTRACT ENFORCEMENT
COPING BEHAVIORS
CREDIT MARKET
CREDIT MARKET CONSTRAINTS
CREDIT TRANSACTIONS
CROP YIELDS
CROWDING OUT
DEVELOPING COUNTRIES
DEVELOPMENT ECONOMICS
DROUGHT
DURABLE
ECONOMIC CONDITIONS
ECONOMIC GROWTH
ECONOMIC SHOCKS
EMPLOYMENT
ENFORCEABILITY
ENFORCEABILITY OF CONTRACTS
EXTENDED FAMILIES
FOOD AID
FOOD CONSUMPTION
FOOD CONSUMPTION EXPENDITURES
FOOD DISTRIBUTION
FOOD INSECURITY
FOOD ITEMS
FOOD POLICY
FOOD PRICES
FOOD SECURITY
FREE FOOD
GOVERNMENT INTERVENTIONS
GROSS DOMESTIC PRODUCT
HOUSEHOLD COMPOSITION
HOUSEHOLD CONSUMPTION
HOUSEHOLD HEAD
HOUSEHOLD HEADS
HOUSEHOLD INCOME
HOUSEHOLD LEVEL
HOUSEHOLD SIZE
HOUSEHOLD SURVEY
HOUSEHOLD SURVEYS
HOUSEHOLD TRANSFERS
HUMAN DEVELOPMENT
HUMAN DEVELOPMENT INDEX
HUMAN RESOURCES
IDIOSYNCRATIC RISK
IDIOSYNCRATIC SHOCKS
INCOME
INCOME INEQUALITY
INCOME SHOCKS
INFLATION
INFLATION RATE
INFORMAL INSURANCE
INFORMAL LOANS
INFORMAL SUPPORT
INSTRUMENT
INSURANCE MARKETS
INSURANCE SCHEMES
INTERNATIONAL BANK
INVESTING
LABOR MARKET
LABOUR
LEGAL FRAMEWORKS
LIVESTOCK OWNERSHIP
LOAN
LOCAL CURRENCY
MALNUTRITION
MEDICAID
MORTALITY
NATIONAL POVERTY
NATIONAL POVERTY LINE
NEGATIVE SHOCKS
OLD AGE
OLD AGE PENSIONS
PARTIAL RISK
POLITICAL ECONOMY
POOR
POOR HEALTH
POOR HOUSEHOLD
POOR HOUSEHOLDS
POVERTY LINE
POVERTY REDUCTION
PRIVATE INSURANCE
PRIVATE TRANSFERS
PROTECTION MECHANISMS
PROTECTION POLICIES
PROTECTION POLICY
PROVISION OF ASSISTANCE
PUBLIC INTERVENTION
PUBLIC INTERVENTIONS
PUBLIC PENSION
PUBLIC TRANSFER
PUBLIC TRANSFERS
REMITTANCE
REMITTANCES
REPAYMENT
RISK SHARING
RISK SHARING ARRANGEMENTS
RURAL
RURAL AREAS
RURAL COMMUNITY
RURAL CREDIT
RURAL CREDIT MARKET
RURAL CREDIT MARKETS
RURAL HOUSEHOLDS
RURAL VILLAGES
SAFETY
SAFETY NET
SAFETY NETS
SHOCK
SHOCKS TO INCOME
SMALLHOLDER FARMING
SOCIAL ASSISTANCE
SOCIAL INSURANCE
SOCIAL PROTECTION
SOCIAL SAFETY NET
SOCIAL SAFETY NETS
SOCIAL SECURITY
SOCIAL TRANSFER
SOCIAL WELFARE
TARGETING
TAX
TRADING
TRANSFER BENEFICIARIES
TRANSFER PROGRAM
TRANSFER PROGRAMS
TRANSFER RECIPIENT
TRANSFER RECIPIENTS
TRANSITORY SHOCKS
ULTRA POOR
VALUABLE ASSETS
VILLAGE ECONOMIES
VULNERABLE PEOPLE
WEALTH EFFECT
WORKING CONDITIONS
Strobbe, Francesco
Miller, Candace
Cash Transfers in an Epidemic Context : The Interaction of Formal and Informal Support in Rural Malawi
geographic_facet Africa
Africa
Sub-Saharan Africa
Southern Africa
Malawi
relation Policy Research working paper ; no. WPS 5824
description This paper investigates the short-run consumption expenditure dynamics and the interaction of public and private arrangements of ultra-poor and labor-constrained households in Malawi using an original dataset from the Mchinjii social cash transfer pilot project (one of the first experiments of social protection policies based on unconditional cash transfers in Sub-Saharan Africa). The authors exploit the unique source of exogenous variation provided by the randomized component of the program in order to isolate the effect of cash transfers on consumption expenditures as well as the net crowding out effect of cash transfers on private arrangements. They find a statistically significant reduction effect on the level of consumption expenditures for those households receiving cash transfers, thus leading to the rejection of the perfect risk sharing hypothesis. Moreover, by looking at the effects of cash transfers on private arrangements in a context characterized by imperfect enforceability of contracts and by a social fabric heavily compromised by high HIV/AIDS rates, the analysis confirms the presence of crowding out effects on private arrangements when looking at gifts and (to a lesser extent) remittances, while informal loans seem to be completely independent from the cash transfer's reception. From a policy perspective, the paper offers a contribution to the evaluation of the very recent wave of social protection policies based on (unconditional) cash transfers in Sub-Saharan Africa, suggesting that there might be an important role for public interventions aimed at helping households to pool risk more effectively.
format Publications & Research :: Policy Research Working Paper
author Strobbe, Francesco
Miller, Candace
author_facet Strobbe, Francesco
Miller, Candace
author_sort Strobbe, Francesco
title Cash Transfers in an Epidemic Context : The Interaction of Formal and Informal Support in Rural Malawi
title_short Cash Transfers in an Epidemic Context : The Interaction of Formal and Informal Support in Rural Malawi
title_full Cash Transfers in an Epidemic Context : The Interaction of Formal and Informal Support in Rural Malawi
title_fullStr Cash Transfers in an Epidemic Context : The Interaction of Formal and Informal Support in Rural Malawi
title_full_unstemmed Cash Transfers in an Epidemic Context : The Interaction of Formal and Informal Support in Rural Malawi
title_sort cash transfers in an epidemic context : the interaction of formal and informal support in rural malawi
publishDate 2012
url http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111004141054
http://hdl.handle.net/10986/3588
_version_ 1764387335205552128
spelling okr-10986-35882021-04-23T14:02:11Z Cash Transfers in an Epidemic Context : The Interaction of Formal and Informal Support in Rural Malawi Strobbe, Francesco Miller, Candace AGRICULTURAL INPUTS AGRICULTURAL OUTPUT AMOUNT OF RISK ASYMMETRIC INFORMATION BENEFICIARIES BORROWER BORROWING CAPITAL MARKETS CASH TRANSFER CASH TRANSFERS CHILD POVERTY CHRONIC POVERTY COLLATERAL CONSUMPTION EXPENDITURE CONSUMPTION EXPENDITURES CONSUMPTION SMOOTHING CONTRACT ENFORCEMENT COPING BEHAVIORS CREDIT MARKET CREDIT MARKET CONSTRAINTS CREDIT TRANSACTIONS CROP YIELDS CROWDING OUT DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DROUGHT DURABLE ECONOMIC CONDITIONS ECONOMIC GROWTH ECONOMIC SHOCKS EMPLOYMENT ENFORCEABILITY ENFORCEABILITY OF CONTRACTS EXTENDED FAMILIES FOOD AID FOOD CONSUMPTION FOOD CONSUMPTION EXPENDITURES FOOD DISTRIBUTION FOOD INSECURITY FOOD ITEMS FOOD POLICY FOOD PRICES FOOD SECURITY FREE FOOD GOVERNMENT INTERVENTIONS GROSS DOMESTIC PRODUCT HOUSEHOLD COMPOSITION HOUSEHOLD CONSUMPTION HOUSEHOLD HEAD HOUSEHOLD HEADS HOUSEHOLD INCOME HOUSEHOLD LEVEL HOUSEHOLD SIZE HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HOUSEHOLD TRANSFERS HUMAN DEVELOPMENT HUMAN DEVELOPMENT INDEX HUMAN RESOURCES IDIOSYNCRATIC RISK IDIOSYNCRATIC SHOCKS INCOME INCOME INEQUALITY INCOME SHOCKS INFLATION INFLATION RATE INFORMAL INSURANCE INFORMAL LOANS INFORMAL SUPPORT INSTRUMENT INSURANCE MARKETS INSURANCE SCHEMES INTERNATIONAL BANK INVESTING LABOR MARKET LABOUR LEGAL FRAMEWORKS LIVESTOCK OWNERSHIP LOAN LOCAL CURRENCY MALNUTRITION MEDICAID MORTALITY NATIONAL POVERTY NATIONAL POVERTY LINE NEGATIVE SHOCKS OLD AGE OLD AGE PENSIONS PARTIAL RISK POLITICAL ECONOMY POOR POOR HEALTH POOR HOUSEHOLD POOR HOUSEHOLDS POVERTY LINE POVERTY REDUCTION PRIVATE INSURANCE PRIVATE TRANSFERS PROTECTION MECHANISMS PROTECTION POLICIES PROTECTION POLICY PROVISION OF ASSISTANCE PUBLIC INTERVENTION PUBLIC INTERVENTIONS PUBLIC PENSION PUBLIC TRANSFER PUBLIC TRANSFERS REMITTANCE REMITTANCES REPAYMENT RISK SHARING RISK SHARING ARRANGEMENTS RURAL RURAL AREAS RURAL COMMUNITY RURAL CREDIT RURAL CREDIT MARKET RURAL CREDIT MARKETS RURAL HOUSEHOLDS RURAL VILLAGES SAFETY SAFETY NET SAFETY NETS SHOCK SHOCKS TO INCOME SMALLHOLDER FARMING SOCIAL ASSISTANCE SOCIAL INSURANCE SOCIAL PROTECTION SOCIAL SAFETY NET SOCIAL SAFETY NETS SOCIAL SECURITY SOCIAL TRANSFER SOCIAL WELFARE TARGETING TAX TRADING TRANSFER BENEFICIARIES TRANSFER PROGRAM TRANSFER PROGRAMS TRANSFER RECIPIENT TRANSFER RECIPIENTS TRANSITORY SHOCKS ULTRA POOR VALUABLE ASSETS VILLAGE ECONOMIES VULNERABLE PEOPLE WEALTH EFFECT WORKING CONDITIONS This paper investigates the short-run consumption expenditure dynamics and the interaction of public and private arrangements of ultra-poor and labor-constrained households in Malawi using an original dataset from the Mchinjii social cash transfer pilot project (one of the first experiments of social protection policies based on unconditional cash transfers in Sub-Saharan Africa). The authors exploit the unique source of exogenous variation provided by the randomized component of the program in order to isolate the effect of cash transfers on consumption expenditures as well as the net crowding out effect of cash transfers on private arrangements. They find a statistically significant reduction effect on the level of consumption expenditures for those households receiving cash transfers, thus leading to the rejection of the perfect risk sharing hypothesis. Moreover, by looking at the effects of cash transfers on private arrangements in a context characterized by imperfect enforceability of contracts and by a social fabric heavily compromised by high HIV/AIDS rates, the analysis confirms the presence of crowding out effects on private arrangements when looking at gifts and (to a lesser extent) remittances, while informal loans seem to be completely independent from the cash transfer's reception. From a policy perspective, the paper offers a contribution to the evaluation of the very recent wave of social protection policies based on (unconditional) cash transfers in Sub-Saharan Africa, suggesting that there might be an important role for public interventions aimed at helping households to pool risk more effectively. 2012-03-19T18:05:05Z 2012-03-19T18:05:05Z 2011-10-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111004141054 http://hdl.handle.net/10986/3588 English Policy Research working paper ; no. WPS 5824 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Africa Africa Sub-Saharan Africa Southern Africa Malawi