Seminario de Microeconomía Aplicada - Customized cash transfers: financial lives and cash-flow preferences in rural Kenya

Paul Niehaus: is an economist and entrepreneur working to accelerate the end of extreme poverty. He is Chancellor's Associates Endowed Chair in Economics at UC San Diego and an affiliate of BREAD, CEGA, J-PAL, and the NBER. His research examines the design, implementation, and impact of anti-poverty programs at large scales.

Resumen del documento: We examine the preferences of low-income households in Kenya over the structure of unconditional cash transfers. We find, first, that most prefer lumpier transfers, and many prefer delayed receipt—unlike the structures typical of safety-net programs, but consistent with evidence on the financial challenges of poverty. Second, poverty itself affects preferences: a little more financial slack when deciding increases desired delay. Finally, financial slack pays back: some delay—aligning transfers better with the seasonal cycle—increases deliberation, income, and goal progress 1.5 years later. Adapting cash transfer design to recipients’ decision-making environment could improve their financial choices and outcomes. 

Tiempo de exposición: 1:30 p. m. a 2:30 p. m.