Little Cash, Little Carry: Liquidity Constraints and Missing Out on Bulk Discounts in Tanzania.
Using high-frequency data on households' item-level purchases from Tanzania, we show that liquidity constraints keep the poor from using bulk discounts consistently. On average, households save roughly 20% during the 'flush' days of the month, which comes from buying in bulk, and the poorest save ov...
| Publicado en: | Journal of Development Studies Vol. 62; no. 4; pp. 582 - 604 |
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| Autores principales: | , |
| Formato: | Artículo |
| Publicado: |
Taylor & Francis Ltd
Apr2026
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| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| Sumario: | Using high-frequency data on households' item-level purchases from Tanzania, we show that liquidity constraints keep the poor from using bulk discounts consistently. On average, households save roughly 20% during the 'flush' days of the month, which comes from buying in bulk, and the poorest save over 30%. Relaxing liquidity constraints through wage income or higher wealth leads to lower prices paid overall and a lower drop when flush. We estimate that failing to use bulk discounts costs households at the first quartile of wealth an additional 1% of their spending on food relative to households at the third quartile. |
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