IDEAS home Printed from https://ideas.repec.org/a/bla/agecon/v55y2024i3p454-478.html
   My bibliography  Save this article

The direct and indirect effects of cash transfer program on the consumption of nutrients: Evidence from Kenya

Author

Listed:
  • Silas Ongudi
  • Djiby Thiam
  • Mario J. Miranda
  • Sam Abdoul

Abstract

How does the receipt of a cash transfer impact consumption of nutrients, vitamins, and minerals in households? To answer this question, we use a randomized controlled trial dataset from Hunger Safety Net Program (HSNP) with 9,246 households spread across the four districts (Turkana, Marsabit, Wajir, and Mandera) of Kenya. In the experiment, HSNP treated households received a bi‐monthly cash transfer of about United States of America Dollar (USD) 20 relative to households in control sub‐locations. Using difference in‐difference specification, we find that HSNP poor beneficiary households in treated households increased (by approximately 96%, 50%, and 61%) the consumption of vitamins A, C, and beta carotene, respectively compared to those in control sub‐locations. Moreover, HSNP non‐poor, non‐beneficiary households residing in treated sub‐locations increased (by about 70% and 46%) the consumption of vitamin A and Beta carotene, respectively compared to those in control sub‐locations. In addition, HSNP‐poor beneficiary households in treated sub‐locations sourced most of their nutrients, vitamins, and minerals from the market. We rule out alternative pathways that could potentially increase consumption and conclude that a rise in consumption amongst HSNP non‐poor, non‐beneficiary households is due to sharing of HSNP transfer amongst social network members.

Suggested Citation

  • Silas Ongudi & Djiby Thiam & Mario J. Miranda & Sam Abdoul, 2024. "The direct and indirect effects of cash transfer program on the consumption of nutrients: Evidence from Kenya," Agricultural Economics, International Association of Agricultural Economists, vol. 55(3), pages 454-478, May.
  • Handle: RePEc:bla:agecon:v:55:y:2024:i:3:p:454-478
    DOI: 10.1111/agec.12827
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/agec.12827
    Download Restriction: no

    File URL: https://libkey.io/10.1111/agec.12827?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Douglas Holtz-Eakin & David Joulfaian & Harvey S. Rosen, 1993. "The Carnegie Conjecture: Some Empirical Evidence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(2), pages 413-435.
    2. Alex Armand & Orazio Attanasio & Pedro Carneiro & Valérie Lechene, 2020. "The Effect of Gender-Targeted Conditional Cash Transfers on Household Expenditures: Evidence from a Randomized Experiment," The Economic Journal, Royal Economic Society, vol. 130(631), pages 1875-1897.
    3. Schady, Norbert & Rosero, José, 2008. "Are cash transfers made to women spent like other sources of income?," Economics Letters, Elsevier, vol. 101(3), pages 246-248, December.
    4. Stefan Dercon & John Hoddinott & Pramila Krishnan & Tassew Woldehanna, 2007. "Collective action and vulnerability: Burial societies in rural Ethiopia," Economics Series Working Papers GPRG-WPS-076, University of Oxford, Department of Economics.
    5. Ingvild Almås & Johannes Haushofer & Anders Kjelsrud, 2019. "The Income Elasticity for Nutrition: Evidence from Unconditional Cash Transfers in Kenya," NBER Working Papers 25711, National Bureau of Economic Research, Inc.
    6. Averi Chakrabarti & Sudhanshu Handa & Luisa Natali & David Seidenfeld & Gelson Tembo, 2020. "More evidence on the relationship between cash transfers and child height," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 12(1), pages 14-37, January.
    7. Jha, Raghbendra & Bhattacharyya, Sambit & Gaiha, Raghav, 2011. "Social safety nets and nutrient deprivation: An analysis of the National Rural Employment Guarantee Program and the Public Distribution System in India," Journal of Asian Economics, Elsevier, vol. 22(2), pages 189-201, April.
    8. Subramanian, Shankar & Deaton, Angus, 1996. "The Demand for Food and Calories," Journal of Political Economy, University of Chicago Press, vol. 104(1), pages 133-162, February.
    9. Haki Pamuk & Erwin Bulte & Adewale Adekunle & Aliou Diagne, 2015. "Editor's choice Decentralised innovation systems and poverty reduction: experimental evidence from Central Africa," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 42(1), pages 99-127.
    10. Sylvester Ochieng Ogutu & Andrea Fongar & Theda Gödecke & Lisa Jäckering & Henry Mwololo & Michael Njuguna & Meike Wollni & Matin Qaim, 2020. "How to make farming and agricultural extension more nutrition-sensitive: evidence from a randomised controlled trial in Kenya [Agricultural extension: good intentions and hard realities]," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 47(1), pages 95-118.
    11. Brugh, Kristen & Angeles, Gustavo & Mvula, Peter & Tsoka, Maxton & Handa, Sudhanshu, 2018. "Impacts of the Malawi social cash transfer program on household food and nutrition security," Food Policy, Elsevier, vol. 76(C), pages 19-32.
    12. Emmanuel Skoufias & Vincenzo Di Maro & Teresa González‐Cossío & Sonia Rodríguez Ramírez, 2009. "Nutrient consumption and household income in rural Mexico," Agricultural Economics, International Association of Agricultural Economists, vol. 40(6), pages 657-675, November.
    13. David Joulfaian & Mark O. Wilhelm, 1994. "Inheritance and Labor Supply," Journal of Human Resources, University of Wisconsin Press, vol. 29(4), pages 1205-1234.
    14. Marc F. Bellemare & Casey J. Wichman, 2020. "Elasticities and the Inverse Hyperbolic Sine Transformation," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(1), pages 50-61, February.
    15. Manuela Angelucci & Giacomo De Giorgi, 2009. "Indirect Effects of an Aid Program: How Do Cash Transfers Affect Ineligibles' Consumption?," American Economic Review, American Economic Association, vol. 99(1), pages 486-508, March.
    16. Fox, Mary Kay & Hamilton, William L. & Lin, Biing-Hwan, 2004. "Effects Of Food Assistance And Nutrition Programs On Nutrition And Health: Volume 4, Executive Summary Of The Literature Review," Food Assistance and Nutrition Research Reports 33871, United States Department of Agriculture, Economic Research Service.
    17. Paul Gertler, 2004. "Do Conditional Cash Transfers Improve Child Health? Evidence from PROGRESA's Control Randomized Experiment," American Economic Review, American Economic Association, vol. 94(2), pages 336-341, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ongudi, Silas & Thiam, Djiby, 2021. "The Direct and Indirect Effects of Income on the Consumption of Nutrients: Experimental Evidence from Kenya," 2021 Conference, August 17-31, 2021, Virtual 314956, International Association of Agricultural Economists.
    2. Rafael Perez Ribas & Fabio Veras Soares & Clarissa Gondim Teixeira & Elydia Silva & Guilherme Issamu Hirata, 2010. "Beyond Cash: Assessing Externality and Behaviour Effects of Non-Experimental Cash Transfers," Working Papers 65, International Policy Centre for Inclusive Growth.
    3. Ingvild Almås & Johannes Haushofer & Anders Kjelsrud, 2019. "The Income Elasticity for Nutrition: Evidence from Unconditional Cash Transfers in Kenya," NBER Working Papers 25711, National Bureau of Economic Research, Inc.
    4. Cruz, Marcio & Ziegelhofer, Zacharias, 2014. "Beyond the income effect : impacts of conditional cash transfer programs on private investments in human capital," Policy Research Working Paper Series 6867, The World Bank.
    5. Maria Gabriela Farfan Betran & Genoni,Maria Eugenia & Rubalcava,Luis & Teruel,Graciela M. & Thomas,Duncan, 2022. "Scaling Up Oportunidades and ItsImpact on Child Nutrition," Policy Research Working Paper Series 10088, The World Bank.
    6. Yang-Ming Chang, 2012. "Strategic transfers, redistributive fiscal policies, and family bonds: a micro-economic analysis," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(4), pages 1481-1502, October.
    7. Horioka, Charles Yuji & Gahramanov, Emin & Hayat, Aziz & Tang, Xueli, 2021. "The impact of bequest motives on labor supply and retirement behavior in Japan: A theoretical and empirical analysis," Journal of the Japanese and International Economies, Elsevier, vol. 62(C).
    8. Erlend E. Bø & Elin Halvorsen & Thor O. Thoresen, 2019. "Heterogeneity of the Carnegie Effect," Journal of Human Resources, University of Wisconsin Press, vol. 54(3), pages 726-759.
    9. Margaret Triyana, 2016. "Do Health Care Providers Respond to Demand-Side Incentives? Evidence from Indonesia," American Economic Journal: Economic Policy, American Economic Association, vol. 8(4), pages 255-288, November.
    10. Ana Fernandes, 2011. "Altruism, labor supply and redistributive neutrality," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(4), pages 1443-1469, October.
    11. Jha, Raghbendra & Gaiha, Raghav & Pandey, Manoj K., 2012. "Net transfer benefits under India's rural employment guarantee scheme," Journal of Policy Modeling, Elsevier, vol. 34(2), pages 296-311.
    12. Chege, Christine G.K. & Sibiko, Kenneth W. & Wanyama, Rosina & Jager, Matthias & Birachi, Eliud, 2019. "Are consumers at the base of the pyramid willing to pay for nutritious foods?," Food Policy, Elsevier, vol. 87(C), pages 1-1.
    13. van den Bold, Mara & Quisumbing, Agnes R. & Gillespie, Stuart, 2013. "Women’s empowerment and nutrition: An evidence review:," IFPRI discussion papers 1294, International Food Policy Research Institute (IFPRI).
    14. Jacobus de Hoop & Jed Friedman & Eeshani Kandpal & Furio C. Rosati, 2019. "Child Schooling and Child Work in the Presence of a Partial Education Subsidy," Journal of Human Resources, University of Wisconsin Press, vol. 54(2), pages 503-531.
    15. Baylis, Kathy & Ham, Andres, 2015. "How important is spatial correlation in randomized controlled trials?," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205586, Agricultural and Applied Economics Association.
    16. Courtney C. Coile & Phillip B. Levine, 2006. "Bulls, Bears, and Retirement Behavior," ILR Review, Cornell University, ILR School, vol. 59(3), pages 408-429, April.
    17. Andreas Eder, 2016. "The impact of inheritances on the retirement behavior of older Europeans," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 43(2), pages 299-331, May.
    18. Delius, Antonia & Sterck, Olivier, 2024. "Cash transfers and micro-enterprise performance: Theory and quasi-experimental evidence from Kenya," Journal of Development Economics, Elsevier, vol. 167(C).
    19. Aviad Tur-Sinai & Harald Künemund & Claudia Vogel, 2022. "Inheritances and work for pay — will the expected wave of bequests undermine active ageing policies?," European Journal of Ageing, Springer, vol. 19(4), pages 1251-1261, December.
    20. Bergolo, Marcelo & Galván, Estefanía, 2018. "Intra-household Behavioral Responses to Cash Transfer Programs. Evidence from a Regression Discontinuity Design," World Development, Elsevier, vol. 103(C), pages 100-118.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:agecon:v:55:y:2024:i:3:p:454-478. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.