The Dynamic Effects of Cash Transfers: Evidence from Rural Liberia and Malawi
By Shilpa Aggarwal, Jenny Aker, Dahyeon Jeong, Naresh Kumar, David Park, Jonathan Robinson, Alan Spearot
January 2023
January 2023
Citation
Aggarwal, Shilpa., Aker, Jenny., Jeong, Dahyeon., Kumar, Naresh., Park, David., Robinson, Jonathan., Spearot, Alan. The Dynamic Effects of Cash Transfers: Evidence from Rural Liberia and Malawi .
Copyright
2023
Share:
Abstract
We study the dynamic effects of large, unconditional cash transfers in rural Liberia and Malawi using bi-monthly surveys. We document improvements in food security until the end of surveying (about a year in Liberia and two in Malawi), but find a short-lived effect on food expenditures and no effect on non-agricultural income at any point. Increased productive investments appear to drive increased food security. After 18-25 months, we also document improvements in IPV, psychological
well-being, and resilience, as well as investment and agricultural output. We find no evidence of effects on local prices or of spillovers to untreated households.
well-being, and resilience, as well as investment and agricultural output. We find no evidence of effects on local prices or of spillovers to untreated households.
Shilpa Aggarwal is an Associate Professor of Economics and Public Policy at the Indian School of Business (ISB). She is a development economist, whose research aims to explore market linkages in developing countries. For her PhD dissertation, she examined the effects of a road construction programme in India that connected remote rural areas to nearby markets. Her ongoing research is focused on agricultural supply chains in India and East Africa. She also works on issues pertaining to domestic trade, microfinance, and food policy.
Professor Aggarwal holds a PhD from the University of California, Santa Cruz, an MA from the Delhi School of Economics, and a BA from Shri Ram College of Commerce, University of Delhi.
Shilpa Aggarwal