Cash vs. in-kind transfers: Indian data meets theory |
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| Institution: | 1. Deakin University, IMPACT (the Institute for Mental and Physical Health and Clinical Translation), Food & Mood Centre, School of Medicine, Barwon Health, Geelong, Australia;2. Cancer Epidemiology Division, Cancer Council Victoria, 615 St Kilda Rd, Melbourne, VIC 3004, Australia;3. Centre for Epidemiology and Biostatistics, Melbourne School of Population and Global Health, University of Melbourne, Melbourne, VIC, Australia;4. Centre for Adolescent Health, Murdoch Children''s Research Institute, VIC, Australia;5. Black Dog Institute, NSW, Australia;6. James Cook University, QLD, Australia;7. Institute for Physical Activity and Nutrition, School of Exercise and Nutrition Sciences, Deakin University, Geelong, VIC 3220, Australia;8. Center for Epidemiological Research in Nutrition and Health, University of Sao Paulo, Av. Dr. Arnaldo, 715, Sao Paulo 01246-904, Brazil;9. Mental Health, Drugs & Alcohol Service, University Hospital Geelong, Barwon Health, VIC 3220, Australia;10. Department of Psychiatry, University of Melbourne, Parkville, VIC 3050, Australia |
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| Abstract: | This paper uses qualitative and quantitative data from a survey of over 1200 rural households in nine Indian states to explore the arguments for and against cash and in-kind (in this case, food) transfers. When respondents were asked to think about, argue, and ‘choose’ between the two, two-thirds of the respondents expressed a preference for food. Rather than the choice made by respondents, the focus here is on understanding the reasons behind their choice, as explained by beneficiaries themselves. Two main findings emerge. First, some arguments corroborate existing theory (e.g., paternalism, fungibility), but others (e.g., self-control, transition costs) are not incorporated in existing theory on the advantages of in-kind transfers. Second, context is important. Most importantly, respondents’ reported preferences were associated with the benefits they were experiencing under the status quo: where the PDS performed better at distributing food, respondents were more likely to report preferring food to cash transfers. The contention of traditional theory that cash is superior fails to factor in contextual concerns. |
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| Keywords: | Cash transfers In-kind transfers India South Asia Entitlements Philosophical |
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