Chapter

Do Public Transfers Crowd Out Private Transfers?: Evidence from a Randomized Experiment in Mexico

Pedro Albarran and Orazio P. Attanasio

in Insurance Against Poverty

Published in print November 2004 | ISBN: 9780199276837
Published online January 2005 | e-ISBN: 9780191601620 | DOI: http://dx.doi.org/10.1093/0199276838.003.0014

Series: WIDER Studies in Development Economics

Do Public Transfers Crowd Out Private Transfers?: Evidence from a Randomized Experiment in Mexico

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This chapter examines the interaction between public programmes and private transfers. It analyses the PROGRESA — a large welfare programme in rural Mexico aimed at fostering the accumulation of human capital by increasing school enrolment, improving nutrition, and health practices. The programme crowded out private transfers. It negatively affected the likelihood of receiving a transfer and the amount received.

Keywords: public transfer; private transfer; Mexico; welfare programme

Chapter.  9907 words.  Illustrated.

Subjects: Economic Development and Growth

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