Cunha, Jesse; De Giorgi, Giacomo; Jayachandran, Seema - C.E.P.R. Discussion Papers - 2011
This paper compares how cash and in-kind transfers affect local prices. Both types of transfers increase the demand for … normal goods, but only in-kind transfers also increase supply. Hence, in-kind transfers should lead to lower prices than cash … transfers, or no transfers. The pecuniary benefit to consumers of in-kind transfers, relative to cash transfers, equals 11% of …