A government program in Mexico randomly assigned villages to receive boxes of food and equivalently-valued cash transfers. Cunha et al. [2011] found that food prices declined in the villages where the equivalently-valued cash was given. Adjust Figure 12.3 accordingly, and compare cash and in-kind transfers.

 

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Other goods per month H 420 340 300 260 A E3 204060 F U B D 150 210 Pounds of cheese per month Other goods per month H 420 340 300 260 A E3 204060 F U B D 150 210 Pounds of cheese per month

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Cash is favourable because when equivalent cash is offered then budget ... View the full answer