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2023 (1)

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Book
Intervention Size and Persistence
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Year: 2021 Publisher: Washington, D.C. : The World Bank,

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Abstract

Do larger interventions improve longer run outcomes more cost effectively? And should poverty traps motivate increasing intervention size? This paper considers two approaches to increasing intervention size in the context of temporary unconditional cash transfers - larger transfers (intensity), and adding complementary graduation program interventions (scope). It does so leveraging 38 experimental estimates of dynamic consumption impacts from 14 developing countries. First, increasing intensity decreases cost effectiveness and does not affect persistence of impacts. This result can be explained by poverty traps or decreasing marginal return on investment in a standard buffer stock model. Second, increasing scope increases impacts and persistence, but reduces cost effectiveness at commonly evaluated time horizons and increases heterogeneity. In summary, larger interventions need not have more persistent impacts, and when they do, this may come at the expense of cost effectiveness, and poverty traps are neither necessary nor sufficient for these results.


Book
Consumer Surplus with Incomplete Markets : Applications to Savings and Microfinance
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Year: 2023 Publisher: Washington, D.C. : World Bank,

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Abstract

The household welfare gains from financial inclusion are empirically elusive. This paper establishes that household welfare gains from a financial technology are equal to the area under dynamically compensated demand in a household model with incomplete financial markets, and general technology, preferences, and choice sets. This paper then estimates compensated demand for financial technologies leveraging three randomized control trials that introduce experimental variation in interest rates. Welfare gains per dollar lent or saved are small as compensated demand elasticities are large, but still correspond to large aggregate welfare gains from financial inclusion.


Book
Factor Market Failures And The Adoption Of Irrigation In Rwanda
Authors: --- --- ---
Year: 2019 Publisher: Washington, D.C. : The World Bank,

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This paper examines constraints to adoption of new technologies in the context of hillside irrigation schemes in Rwanda. It leverages a plot-level spatial regression discontinuity design to produce 3 key results. First, irrigation enables dry season horticultural production, which boosts on-farm cash profits by 70 percent. Second, adoption is constrained: access to irrigation causes farmers to substitute labor and inputs away from their other plots. Eliminating this substitution would increase adoption by at least 21 percent. Third, this substitution is largest for smaller households and wealthier households. This result can be explained by labor market failures in a standard agricultural household model.

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