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Abstract
This paper examines the impact of wheat transfers and cash incomes on wheat
consumption and wheat markets. Using propensity score- matching techniques, the total
marginal propensity to consume (MPC) for wheat is, on average, 0.33, ranging from
essentially zero for Food For Work (a program with large transfers) to 0.51 for Food For
Education. Econometric estimates indicate that the MPC for small wheat transfers to poor
households is approximately 0.25, while the MPC for wheat out of cash income is near
zero. This increase in demand for wheat reduces the potential price effect of three major
targeted programs involving small rations (Food For Education, Vulnerable Group
Development, and Vulnerable Group Feeding) by about one-third.