Business, Management and Accounting
8 years ago

Private transfers in Philippines hinder public aid to the poor.

Journal of Public Economics
How responsive are private transfers to income? Evidence from a laissez-faire economy
Donald Cox, Bruce E. Hansen, Emmanuel Jiménez

Paper Summary

Private transfers in the Philippines respond to household income in a non-linear way, with larger effects on low-income households. This can hinder efforts to help the poor by leaking benefits to richer households. The study suggests that private transfers play a significant role in redistributing resources within families, impacting public redistribution policies.

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