Description

Abstract: Using household-level panel data collected quarterly between June 2000 and December 2001, we explore the efficacy of food aid targeting among pastoralist households in northern Kenya and southern Ethiopia. We then extend this analysis to explore how food aid impacts private intra-community transfers, so as to establish whether food aid perhaps crowds out private transfers or if it maybe reaches intended beneficiaries indirectly through induced private reallocations even if its direct targeting proves relatively imprecise. Preliminary results indicate that food aid volumes are very modest, on average, contrary to widespread claims of food aid dependency. Food aid is not well targeted by income or wealth and appears to suffer from some inertia. However, food aid flows especially to locations suffering low rainfall levels while private transfers respond to household-specific asset shocks. By itself, food aid does not significantly impact private transfers. Therefore, there is little evidence of food aid either crowding out private transfers or being indirectly targeted effectively.