Customized Cash Transfers: Financial Lives and Cash-flow Preferences in Rural Kenya / Carolina Kansikas, Anandi Mani, Paul Niehaus.

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Kansikas, Carolina

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Material type: Text

TextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w30930.Publication details: Cambridge, Mass. National Bureau of Economic Research 2023.Description: 1 online resource: illustrations (black and white)Subject(s):

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Abstract: 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.

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Item type	Home library	Collection	Call number	Status	Date due	Barcode	Item holds
Working Paper	Biblioteca Digital	Colección NBER	nber w30930 (Browse shelf(Opens below))	Not For Loan

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February 2023.

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.