2011
DOI: 10.1108/01443581111161832
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On the marginal social cost of cash‐cum‐in‐kind transfers

Abstract: This paper investigates the marginal social cost of cash-cum-in-kind transfers (MSCKT). Based on a generalization of Wildasin (1984), we characterize that the marginal social cost of public funds depends on the relation between labor supply and the cash-cum-in-kind transfers. To estimate the response of labor supply to these publicly provided goods, and simulate the MSCKT for Brazil, we use the Brazilian household data survey in 2004. Our simulations suggest that MSCKT can increases up to 14% if compared to ca… Show more

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Cited by 1 publication
(1 citation statement)
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References 33 publications
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“…At one time a very active research agenda related to whether it was a good idea to have the FSP as an in-kind transfer or simply a cash transfer called “cash-out” in the literature. The general consensus is that cash transfers are more efficient in the sense that they improve welfare for program participants at a lower cost to the tax payer as presented in Duarte et al (2011). More specifically, the arguments in favor of cash-out are that the in-kind transfer is costly to administer and distortionary in that recipients consume more food than they would under a cash transfer.…”
Section: Literature Reviewmentioning
confidence: 99%
“…At one time a very active research agenda related to whether it was a good idea to have the FSP as an in-kind transfer or simply a cash transfer called “cash-out” in the literature. The general consensus is that cash transfers are more efficient in the sense that they improve welfare for program participants at a lower cost to the tax payer as presented in Duarte et al (2011). More specifically, the arguments in favor of cash-out are that the in-kind transfer is costly to administer and distortionary in that recipients consume more food than they would under a cash transfer.…”
Section: Literature Reviewmentioning
confidence: 99%