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Effect of Food and Cash Transfers on Food Consumption in Ethiopia: Evidence Based on a Food Demand System Analysis

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  • Takada, Jun
  • Shuto, Hisato

Abstract

This study introduces the inverse probability weighted regression adjustment (IPWRA) approach to examine the impact of food or cash transfer programs in Ethiopia. The average treatment effects from the IPWRA food demand system estimation show a significantly lower expenditure share of fruits and vegetables and a higher share of animal-based products among assistance beneficiaries than non-beneficiaries. However, the positive, insignificant treatment effect on expenditure share of food away from home is estimated. These findings propose that our concerns should be redefined to elucidate changes in beneficiaries’ menu choice and time allocation by transfers within a workfare program.

Suggested Citation

  • Takada, Jun & Shuto, Hisato, 2024. "Effect of Food and Cash Transfers on Food Consumption in Ethiopia: Evidence Based on a Food Demand System Analysis," Japanese Journal of Agricultural Economics (formerly Japanese Journal of Rural Economics), Agricultural Economics Society of Japan (AESJ), vol. 26.
    • Handle: RePEc:ags:jpjjre:348872
    DOI: 10.22004/ag.econ.348872
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    References listed on IDEAS

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    1. Tagel Gebrehiwot & Carolina Castilla, 2019. "Do Safety Net Transfers Improve Diets and Reduce Undernutrition? Evidence from Rural Ethiopia," Journal of Development Studies, Taylor & Francis Journals, vol. 55(9), pages 1947-1966, September.
    2. Bethelhem Legesse Debela & Gerald E. Shively & Stein T. Holden, 2021. "Implications of food-for-work programs for consumption and production diversity: Evidence from the Tigray Region of Ethiopia," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 9(1), pages 1-24, December.
    3. Yanghao Wang & Metin Çakır, 2021. "Welfare impacts of increasing teff prices on Ethiopian consumers," Agricultural Economics, International Association of Agricultural Economists, vol. 52(2), pages 195-213, March.
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    5. Brian W. Gould, 2003. "An Empirical Assessment of Endogeneity Issues in Demand Analysis for Differentiated Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(3), pages 605-617.
    6. Burney, Shaheer, 2018. "In-kind benefits and household behavior: The impact of SNAP on food-away-from-home consumption," Food Policy, Elsevier, vol. 75(C), pages 134-146.
    7. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
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