Time Discounting and Credit Market Access in a Large-Scale Cash Transfer Programme

Creator

Handa, Sudhanshu
- University of North Carolina at Chapel Hill
- Other Affiliation: Social and Economic Policy Section; UNICEF Office of Research-Innocenti
Martorano, Bruno
- Other Affiliation: Institute for Development Studies; Sussex University
Halpern, Carolyn T.
- University of North Carolina at Chapel Hill
Pettifor, Audrey
- University of North Carolina at Chapel Hill
Thirumurthy, Harsha
- University of North Carolina at Chapel Hill

Abstract

Time discounting is thought to influence decision-making in almost every sphere of life, including personal finances, diet, exercise and sexual behavior. In this article we provide evidence on whether a national poverty alleviation program in Kenya can affect inter-temporal decisions. We administered a preferences module as part of a large-scale impact evaluation of the Kenyan Government’s Cash Transfer for Orphans and Vulnerable Children. Four years into the program we find that individuals in the treatment group are only marginally more likely to wait for future money, due in part to the erosion of the value of the transfer by inflation. However among the poorest households for whom the value of transfer is still relatively large we find significant program effects on the propensity to wait. We also find strong program effects among those who have access to credit markets though the program itself does not improve access to credit.

Date of publication

Keyword

DOI

Identifier

Resource type

Rights statement

Journal title

Journal volume

Journal issue

Page start

Page end

Language

ISSN

Relations

Thumbnail	Title	Date Uploaded	Visibility	Actions
	PubMedCentral-PMC5331518.pdf	2016	Public	Download