title: Time Discounting and Credit Market Access in a Large-Scale Cash Transfer Programme.
abstract: Time discounting is thought to influence decision-making in almost every sphere of life, including personal finances, diet, exercise and sexual behavior. In this article we provide evidence on whether a national poverty alleviation program in Kenya can affect inter-temporal decisions. We administered a preferences module as part of a large-scale impact evaluation of the Kenyan Government's Cash Transfer for Orphans and Vulnerable Children. Four years into the program we find that individuals in the treatment group are only marginally more likely to wait for future money, due in part to the erosion of the value of the transfer by inflation. However among the poorest households for whom the value of transfer is still relatively large we find significant program effects on the propensity to wait. We also find strong program effects among those who have access to credit markets though the program itself does not improve access to credit.
authors.affiliation: University of North Carolina at Chapel Hill, Chapel Hill, NC 27599, USA; Social & Economic Policy Section, UNICEF Office of Research-Innocenti, Florence, Italy.
authors.forename: Sudhanshu
authors.initials: S
authors.lastname: Handa
authors.affiliation: Institute for Development Studies, Sussex University, Brighton, UK.
authors.forename: Bruno
authors.initials: B
authors.lastname: Martorano
authors.affiliation: University of North Carolina at Chapel Hill, Chapel Hill, NC 27599, USA.
authors.forename: Carolyn
authors.initials: C
authors.lastname: Halpern
authors.affiliation: University of North Carolina at Chapel Hill, Chapel Hill, NC 27599, USA.
authors.forename: Audrey
authors.initials: A
authors.lastname: Pettifor
authors.affiliation: University of North Carolina at Chapel Hill, Chapel Hill, NC 27599, USA.
authors.forename: Harsha
authors.initials: H
authors.lastname: Thirumurthy