A research paper by David Evans, World Bank and Anna Popova, Stanford University concludes that giving From the Latin word moneta, nickname that was given by Romans to the goddess Juno because there was a minting workshop next to her temple. Money is any item that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular region, country or socio-economic context. Its onset dates back to the origins of humanity and its physical representation has taken on very varied forms until the appearance of metal coins. The banknote, a typical representati... More to the poor has a negative effect on the consumption of ‘temptation goods’ such as tobacco and alcohol. The See Banknote paper. More reviews 19 studies with quantitative evidence on the impact of Money in physical form such as banknotes and coins. More transfers on temptation good expenditure, as well as 11 studies that surveyed whether respondents reported they used transfers to purchase temptation goods. Not one of the 19 studies found that cash grants increase tobacco and alcohol consumption and many of them found that it leads to a reduction.
The authors put forward several explanations.
Cash transfers This is the action by which certain banknotes and/or coins are exchanged for the same amount in banknotes/coins of a different face value, or unit value. See Exchange. More the way poor households manage their budgets. Before receiving cash, spending on education or health might have seemed futile, but afterwards, parents might decide to invest in their children’s education. To make this happen, it might mean cutting back on booze and smoking.
The economists show that when money is given for a specific reason, people tend to use it for that reason, even when there is no one forcing them. In the case of cash transfers, households are generally told to use the money for family welfare.
Lastly, cash transfers are usually made to women. When women rule over household income, money is more likely to be used on food and healthcare studies find.