Tag
income_effect
4 findings
DevelopmentCredit Constraint Budget RelaxationEven among poor households with spending near baseline levels, 88 percent spent more than the grant amount (Rs 125/year), allowing anticipated grants to relax general budget constraints and result in a 76% private expenditure offset (elasticity of -0.21, p < 0.01).RCTPolicy & public sectorMeans-Tested Housing Voucher Work DisincentiveVoucher utilization reduced quarterly employment rates by 3.6 percentage points (6 percent of control complier mean), reduced quarterly earnings by $329 (10 percent of control complier mean), and increased public assistance participation by 6.7 percentage points (12 percent of control complier mean).RCTLabour & employmentLandless Labor Supply Income EffectIn villages experiencing delayed monsoon payouts, receiving an insurance payout lowered labor force participation by 28.5 percentage points (t-stat = -1.635) and reduced harvest labor supply by 15.44 days (t-stat = -1.391) at median rainfall deficiency.RCTFinance & microfinanceDebt Maturity Portfolio Effect vs Income EffectThe net present value income effect accounts for only Rs 10,000 (roughly 42%) of the observed Rs 23,600 long-run capital stock differential between grace period and regular clients, proving that enabling illiquid investment choice (the portfolio effect) drives the majority of economic gains.RCT