The price effects of cash versus in-kind transfers
Jesse Cunha, Giacomo De Giorgi, Seema Jayachandran,
Should governments pay entitlements in cash or in kind to help reduce poverty? The authors of CEPR DP8581 find that cash transfers increase prices, especially in remote areas where the poorest consumers often live. In-kind transfers lower local prices, helping consumers at the expense of producers with a benefit equal to 11% of value of the transfer.