Cash transfers and temptation goods

Abstract

Cash transfer programs are social welfare programs that contain restrictions regarding how the given funds can be used. These studies investigate whether cash transfer programs influence consumption of temptation goods, or goods that generate positive utility for the self that might detract from investments in schooling and health. The authors find almost without exception that studies either find no significant impact or a significant negative impact of transfers on expenditures on temptation goods and thereby conclude that cash transfers are not used for temptation goods at any significant levels, irrespective of region or program design. – AI-generated abstract.