If the ultimate cause of the problem was
distortion from
economic incentives, you have to ask yourself, «What is the
economic incentive and how can we address it to
reduce or eliminate it?»
Specifically, we investigate if transfers: 1) induce higher spending on alcohol or tobacco; 2) are fully consumed (rather than invested); 3) create dependency (
reduce participation in productive activities); 4) increase fertility; 5) lead to negative community - level
economic impacts (including price
distortion and inflation), and 6) are fiscally unsustainable.