Xi Chen acknowledges generous Doctoral Research Grant from the Institute for the Social Sciences at Cornell University and precious data set provided by the Development Strategy and Governance Division at IFPRI. Conference Travel Grant provided by the Department of Applied Economics and...

This paper is based on our ongoing joint work with Ravi Kanbur. Xi Chen is grateful to Ravi Kanbur for invaluable comments, guidance and encouragement. For comments and suggestions, please direct correspondence to Xi Chen at xc49@cornell.edu.

Numerous national transfer programs around the world are designed with uniform benefit schedules imposed by central governments, but implemented by local governments. The Productive Safety Net Program (PSNP) in Ethiopia, the second largest safety net in Sub Saharan Africa, is one such program....

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