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

Deon Filmer, Jed Friedman, Eeshani Kandpal, Junko Onishi
2021 Review of Economics and Statistics  
Can cash aid harm non-recipients by raising local prices? We show that a householdtargeted cash transfer in the Philippines increases the prices of perishable foods in some markets and raises stunting among non-beneficiary children by 11 percentage points (34 percent). Impacts increase in the size of the village income shock and remoteness-- and are sustained 2.5 years after program introduction. Price effects from an experimental sample are confirmed with national expenditure surveys collected
more » ... e surveys collected during program scaleup. Household-targeted cash transfers can thus generate local spillovers that undermine program goals. Selected geographic targeting may avoid price spillovers at moderate additional cost.
doi:10.1162/rest_a_01061 fatcat:pylfh5mfm5f5lndfs5eg4vvk7i