The behavior of both recipients and administrators tends to convert in-kind Abstract welfare assistance into cash assistance. Therefore, reduction of recipients'
utility through constraints on their behavior is not an issue in evaluating in-kind
transfers. The main disadvantage of in-kind transfers is instead their reduction of recipients' and donors' utility through excess administrative cost and
misdirection of benefits. These patterns are illustrated in the operating experience of WIC, a nutrition program for low-income mothers and children.
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