Resumen de Conditional cash transfers and education quality in the presence of credit constraints
We investigate the relative merits of unconditional cash transfers (UCT), conditional cash transfers (CCT), and the e ects of improvements in education quality on eciency and welfare. In our setting, some parents underinvest in their children's education because capital market imperfections prevent them from borrowing. Under suciently accurate targeting, CCT are more e ective than UCT in enhancing the eciency of these households' decisions. However, UCT is superior to CCT in terms of welfare unless targeting is perfect, in which case UCT and CCT are equivalent. Education quality is welfare improving, but may not be eciency enhancing when public education quality is very low
