Do Public Transfers Crowd-out Private Transfers? Evidence from the Thai Socio-Economic Panel Survey
Keywords:Public transfers, private transfers, crowding-out, Thailand.
There exists both theoretical and empirical evidence, which shows that public transfer programs crowd-out private transfers. This study takes advantage of three waves of Thai Socio-Economic Panel Survey, during the period 2005-2007 to investigate the connection between public transfers and private transfers in Thailand. Thai agricultural households who have been one of the main targets of Thai government transfers over the past several decades are used as a sample group. The Tobit, probit and logit model are used to estimate and to check the robustness of the results of the relationships between private and public transfers. The empirical results revealed that crowding-out exists, especially the households in the Northeastern region. Therefore, in order to avoid dead-weight loss, public transfer should be implemented with care. Targeting household groups should increase the effectiveness of public transfers programme and then actually raises Thai household welfare.
How to Cite
Submission of a manuscript to Applied Economics Journal will be taken to imply that the author(s) guarantee that the paper is an original work, has not been published, and is not being considered for publication elsewhere either in printed or electronic form. The author(s) have obtained permission from the copyright holder to reproduce in the article material not owned by them, that author(s) have acknowledged the source, and that this article contains no violation of any existing copyright or other third party right or any material of an obscene, indecent, libelous or otherwise unlawful nature and that the article does not infringe the rights of others. The author(s) will indemnify and keep indemnified the editors and Applied Economics Journal, Center for Applied Economics Research (CAER), Faculty of Economics, Kasetsart University against all claims and expenses. The author(s) agree that the publisher may arrange for the article to be published and sold or distributed on its own, or with other related materials, and could reproduce and/or distribute in printed, electronic or any other medium whether now known or hereafter devised, in all languages, and to authorize third parties to do the same.