Social Transfers and Growth: The Missing Evidence from Luminosity Data

The effects of social transfers on growth are still unclear. The limitations of aggregated data at sub-national levels have confined the analysis to the use of simulation models and household surveys. As an alternative, this paper contributes to the empirical literature by assessing the effects of Colombia's Familias en Acción, a human development cash transfer programme, on municipality level growth rates during its initial stage of implementation between 2000 and 2004.

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