TY - JOUR
T1 - Smoothing, discounting, and demand for intra-household control for recipients of conditional cash transfers
AU - Aycinena, Diego
AU - Blazsek, Szabolcs
AU - Rentschler, Lucas
AU - Sandoval, Betzy
N1 - Funding Information:
We thank two anonymous reviewers as well as participants at the 2014 Symposium on Economic Experiments in Developing Countries, Weber State University, ESI Chapman University seminars, Economic Science Association International Meetings and the Antigua Experimental Economics Conference for helpful comments and suggestions. Jorge Chang and Mario Sandari Gomez provided excellent research assistance. We also appreciate support from Pablo Pastor, Alvaro Garcia, Raul Zurita, Raul E. Rueda, Arturo Melville, and Amy Benítez. This project would not have been possible without the collaboration of Fundación Capital and the Ministerio de Desarrollo Social. This study was funded by Fundación Capital.
Publisher Copyright:
© 2019, © 2019 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.
Copyright:
Copyright 2019 Elsevier B.V., All rights reserved.
PY - 2019/1/1
Y1 - 2019/1/1
N2 - Inter-temporal preferences are important determinants of investment decisions, including investments in human capital. Yet, little is known about these preferences for recipients of conditional cash transfers (CCTs). We simultaneously estimate utility curvature (preference for consumption smoothing), discounting, and present biasedness for such recipients. We also introduce a financially motivated method of measuring willingness to forgo funds to control household finances. We find that female participants in a CCT program in Guatemala have very high degrees of utility curvature and low discount factors, which may lead to low levels of investment by participants in the human capital of the household. We also find that intra-household conflict is not significantly related to consumption smoothing, discounting, or present bias.
AB - Inter-temporal preferences are important determinants of investment decisions, including investments in human capital. Yet, little is known about these preferences for recipients of conditional cash transfers (CCTs). We simultaneously estimate utility curvature (preference for consumption smoothing), discounting, and present biasedness for such recipients. We also introduce a financially motivated method of measuring willingness to forgo funds to control household finances. We find that female participants in a CCT program in Guatemala have very high degrees of utility curvature and low discount factors, which may lead to low levels of investment by participants in the human capital of the household. We also find that intra-household conflict is not significantly related to consumption smoothing, discounting, or present bias.
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U2 - 10.1080/15140326.2019.1596641
DO - 10.1080/15140326.2019.1596641
M3 - Article
AN - SCOPUS:85064943856
SN - 1514-0326
VL - 22
SP - 218
EP - 241
JO - Journal of Applied Economics
JF - Journal of Applied Economics
IS - 1
ER -
