Abstract
This paper evaluates the impact of an increase in the value of the cash transfer paid to families by the Brazilian Bolsa Familia program. The existence of a similar program in the state of Ceara, Bolsa Cidadao, that increases the value received by a sub-group of families, provides a unique dataset, enabling us to evaluate the effect of a higher value of transfer on the spending of comparable households. There is a significant increase in consumption, but it is smaller than the increment in the income, suggesting that the consumption of the households is not properly declared.
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