Evaluation
When making transfers to poor families, many governments choose to transfer goods rather than cash, often in order to encourage the consumption of specific goods. In southern Mexico, researchers studied the effects of both cash and in-kind transfers on the demand and supply of food. They found that both cash and in-kind transfers increased the demand for food, but only in-kind transfers also increased supply. As a result, in-kind transfers led to lower food prices than cash transfers, which can be seen as an indirect benefit for households who did not receive the transfers.