Income Transfers as a Public Good: An Application to AFDC

Income Transfers as a Public Good: An Application to AFDC

EMPIRICAL ESTIMATES FOR THE AID TO FAMILIES WITH DEPENDENT CHILDREN (AFDC) PROGRAM OVER THE TEN-YEAR PERIOD 1963-1972 ARE CONSISTENT WITH THE PUBLIC GOOD MODEL OF INCOME. THE ESTIMATED ELASTICITY OF REAL AFDC BENEFITS WITH RESPECT TO REAL STATE PER CAPITA INCOME IS CLOSE TO UNITY. PAYMENT LEVELS HAV...

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Veröffentlicht in:The American economic review 1976-06, Vol.66 (3), p.359-371
1. Verfasser: Orr, Larry L.
Format: Artikel
Sprache:eng
Schlagworte:
AFDC
Coefficients
Economic benefits
Family allowances
Income
Income effect
Income taxes
Insurance, Social
Public assistance
Public assistance programs
Public good
Public goods
Revenue sharing
Taxpaying
Transfer payments
United States
Variable coefficients
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Zusammenfassung:EMPIRICAL ESTIMATES FOR THE AID TO FAMILIES WITH DEPENDENT CHILDREN (AFDC) PROGRAM OVER THE TEN-YEAR PERIOD 1963-1972 ARE CONSISTENT WITH THE PUBLIC GOOD MODEL OF INCOME. THE ESTIMATED ELASTICITY OF REAL AFDC BENEFITS WITH RESPECT TO REAL STATE PER CAPITA INCOME IS CLOSE TO UNITY. PAYMENT LEVELS HAVE KEPT PACE WITH THE GROWTH IN INCOME. A DISTURBING FINDING IS THE APPARENT DISCRIMINATION AGAINST NONWHITES IN SETTING STATE BENEFIT LEVELS. NET EFFECT OF INCREASES IN THE AFDC CASELOAD IS TO DEPRESS BENEFIT LEVELS. THE STRENGTH OF THIS EFFECT DEPENDS ON POPULATION SIZE, WITH LARGER EFFECTS OCCURRING IN THE SMALLER STATES. TABLES.
ISSN:0002-8282
1944-7981