The Consumption of Household Goods, Bargaining Power and their Relationship with a Conditional Cash Transfer Program in Peru

This research assesses the effect of the JUNTOS cash transfer program on the consumption of certain merit goods (such as food) and demerit goods (such as alcoholic drinks). We address the following question: What is the impact of the cash transfer on the consumption of these goods? This research utilises socioeconomic information from the Peruvian National Household Survey 2009–2014. The results of the fixed-effects estimates show that the JUNTOS program's beneficiary households spend a large proportion of the family budget on food consumption, children's clothing and education, while no impact is found on consumption of soft drinks, alcoholic drinks and tobacco. Copyright © 2017 John Wiley & Sons, Ltd.