Consumption Smoothing and Frequency of Benefit Payments of Cash Transfer Programs

S-Tier
Journal: American Economic Review
Year: 2017
Volume: 107
Issue: 5
Pages: 430-35

Score contribution per author:

2.681 = (α=2.01 / 3 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We analyze two noncontributory Mexican pension programs for the elderly. Both paid similar amounts, but one paid monthly while the other paid every two months. The Life Cycle Hypothesis suggests frequency of benefits payments should not affect consumption smoothing, but we find the monthly program was more effective in smoothing food expenditure. It also increased doctor visits and reduced the incidence of hunger spells. Under the bimonthly program, expenditures on food significantly decline between paychecks but ownership of durable goods increased. This suggests the importance of payment frequency in social programs.

Technical Details

RePEc Handle
repec:aea:aecrev:v:107:y:2017:i:5:p:430-35
Journal Field
General
Author Count
3
Added to Database
2026-01-24