Timing Matters: How Unconditional Cash Transfer Frequency Shapes Dietary Choices Among Vulnerable Older Adults

Low-income elderly consumers, often overlooked in studies of public financial assistance programs, may face challenges in managing resources to maintain dietary health. This study examines how the payment frequency of an unconditional cash transfer program impacts dietary behaviors among low-income elderly populations in Colombia. Using nationally representative data from a federal financial assistance program, we implement a Multivalued Treatment Model with Propensity Score Matching and Augmented Inverse Probability Weighting to assess the effects of monthly versus bi-monthly payments on food expenditures, dietary diversity, and diet quality. Results show that monthly payments enhance dietary diversity and diet quality by supporting healthier food purchases compared to bi-monthly payments. Subgroup analyses revealed that older seniors and males benefit most from monthly payments. Mechanisms explored include consumption smoothing and subjective wealth perceptions, with findings suggesting that more frequent and predictable income flows may foster greater perceived financial stability. The study advances consumer behavior theory by linking payment frequency to dietary outcomes and offers practical implications for optimizing financial assistance programs. While bi-monthly payments reduce administrative costs, monthly payments are recommended to improve dietary health. These findings contribute to understanding income timing's role in fostering healthier consumer behavior.