The Dynamic Effects of Cash Transfers: Evidence from Rural Liberia and Malawi

We study the dynamic effects of large, unconditional cash transfers in rural Liberia and Malawi using bi-monthly phone surveys. We document improvements in food security until the end of surveying (about a year in Liberia and 2 years in Malawi), but short-lived effects on food expenditures and none at any point on non-agricultural income. Underlying pathways for food security seem to partly work through increased productive investments. After 18-25 months, cash also improves IPV, psychological well-being, and resilience, as well as investment and agricultural output. We find no evidence of effects on local prices, or of spillovers to untreated households