Humanitarian vs. Development Aid for Refugees: Evidence from a Regression Discontinuity Design * Claire MacPherson Department for International Development (DFID) Olivier Sterck Refugee Studies Centre and CSAE, University of Oxford November 2019 Abstract Assistance to refugees living in camps is shifting from a humanitarian model, based on care and maintenance, to a development model that pro- motes refugee self-reliance through income-generating activities, market de- velopment, and cash transfers. Evidence on the effects of this paradigm shift is limited. Exploiting a regression discontinuity design, this paper tests whether the adoption of a development approach to refugee assistance in a new settlement in Kenya has a positive impact. We find that refugees benefiting from the new approach have better diets and perceive themselves as happier and more independent from humanitarian aid. We find no effect on assets and employment. These effects appear to be driven by the switch from food rations to cash transfers and by the wider promotion of kitchen gardens. Our findings argue in favor of the development approach to refugee assistance, which is cheaper and leads to better outcomes. Keywords : Refugee economies, Humanitarian aid, Cash transfers, Agricul- ture, Self-reliance JEL Classification : O12, O15, I38, Q12 * The analysis presented in this paper reflects the views of the authors but not necessarily the views of the institutions employing them. All errors are ours. We acknowledge funding from the World Food Program. 1 Electronic copy available at: https://ssrn.com/abstract=3484965