Effect of Food and Cash Transfers on Food Consumption in Ethiopia: Evidence Based on a Food Demand System Analysis

Abstract

This study introduces the inverse probability weighted regression adjustment (IPWRA) approach to examine the impact of food or cash transfer programs in Ethiopia. The average treatment effects from the IPWRA food demand system estimation show a significantly lower expenditure share of fruits and vegetables and a higher share of animal-based products among assistance beneficiaries than non-beneficiaries. However, the positive, insignificant treatment effect on expenditure share of food away from home is estimated. These findings propose that our concerns should be redefined to elucidate changes in beneficiaries’ menu choice and time allocation by transfers within a workfare program.