Cash Transfers and Temptation Goods

A broader survey highlights that there is a widely held belief that cash given to poor people will be squandered on temptation goods, such as alcohol and other non-essentials. Governments and aid agencies may worry that men could control the cash provided and spend it on alcohol and cigarettes, rather than food for hungry children. These concerns may explain why many countries prefer in-kind transfer programs, even though economic reasoning would suggest that cash transfers are more efficient.