Found 17 article(s) for author 'Nathaniel Hendren'

Efficient Welfare Weights

Efficient Welfare Weights. Nathaniel Hendren, October 2017, Paper, “How should we measure economic efficiency? The canonical measure is an unweighted sum of willingnesses to pay. In contrast, this paper provides efficient welfare weights that implement the Kaldor-Hicks tests for efficiency but account for the distortionary cost of taxation. The shape of the income distribution yields bounds on these weights that suggest it is efficient to weight surplus to the poor more than to the rich. Point estimates suggest surplus to the poor should be weighted 1.5-2x more than surplus to the rich. I illustrate how to use these weights to evaluate the efficiency of government policy changes.” Link

Tags: , , , ,

Subsidizing Health Insurance for Low-Income Adults: Evidence from Massachusetts and Implications for Future Health Reforms

Subsidizing Health Insurance for Low-Income Adults: Evidence from Massachusetts and Implications for Future Health Reforms. Nathaniel Hendren, Mark Shepard, May 2017, Paper, “How much are low-income individuals willing to pay for health insurance? What are the implications for insurance market reforms that change government subsidies? Using administrative data from Massachusetts’ subsidized insurance exchange in 2009-2013, we exploit discontinuities in the premium subsidy schedule to estimate willingness to pay and costs of insurance among low-income adults. We obtain three main results…Link

Tags: , , , , ,

The Impact of Neighborhoods on Intergenerational Mobility II: County-Level Estimate

The Impact of Neighborhoods on Intergenerational Mobility II: County-Level Estimate. Raj Chetty, Nathaniel Hendren, 2016, Paper, “We characterize the effects of neighborhoods on children’s earnings and other outcomes in adulthood by studying more than five million families who move across counties in the U.S. We identify the causal effect of growing up in every county in the U.S. by estimating a fixed effects model identified from families who move across counties with children of different ages. We use these estimates to quantify the size of place effects, construct optimal forecasts of the causal effect for each place, and study the characteristics of places that cause higher (and lower) economic outcomes.Link

Tags: , , , , ,

Measuring Ex-Ante Welfare in Insurance Markets

Measuring Ex-Ante Welfare in Insurance Markets. Nathaniel Hendren, October 2016, Paper, “Insurance has value by insuring against the realization of risk. Adverse selection occurs when a portion of this risk is already known at the time of contracting. This suggests demand estimates in adversely selected markets tend to understate the ex-ante (or ex-post utilitarian) willingness to pay for insurance. This paper provides new reduced-form methods to infer the ex-ante value of insurance from observed demand and cost curve estimates in markets with adverse selection. The slope of the demand and cost curves measure the quantity of information revealed; by combining with internal or external measures of risk aversion, one obtains exante measures of willingness to pay. Applying the model to existing estimates in health and unemployment insurance contexts,” Paper – Link, Slides – Link

Tags: , , , , ,

Knowledge of Future Job Loss and Implications for Unemployment Insurance

Knowledge of Future Job Loss and Implications for Unemployment Insurance. Nathaniel Hendren, August 2015, Paper, “This paper studies the positive and normative implications of individuals’ knowledge about their potential future job loss. Using information contained in subjective probability elicitations, I show individuals have significant information about their chances of losing their job conditional on a wide range of observable information insurers could potentially use to price the insurance. I derive lower bounds that suggest individuals would need to be willing to pay at least a 75% markup in order to generate the existence of a private unemployment insurance market, far exceeding willingness-to-pay estimates. I derive semi-parametric point estimates of this markup in excess of 300%. This suggests private information about future job loss provides a micro-foundation for the absence of a private unemployment insurance market.Link

Tags: , , ,

Private Information and Unemployment Insurance

Private Information and Unemployment Insurance. Nathaniel Hendren, July 19, 2015, Paper. “I provide empirical evidence that private information limits the ability to insure the risk of job loss in private markets, and analyze the implications of this micro-foundation for normative analysis of optimal unemployment insurance. Using information contained in subjective probability elicitations, I show individuals have significant information about their chances of losing their job conditional on a wide range of observable information insurers could potentially use to price the insurance. I derive lower bounds that suggest individuals would need to be willing toLink

Tags: ,

The Impacts of Neighborhoods on Intergenerational Mobility: Childhood Exposure Effects and County-Level Estimates

The Impacts of Neighborhoods on Intergenerational Mobility: Childhood Exposure Effects and County-Level Estimates. Raj Chetty, Nathaniel Hendren, May 2015, Paper, “We characterize the effects of neighborhoods on children’s earnings and other outcomes in adulthood by studying more than five million families who move across counties in the U.S. Our analysis consists of two parts. In the first part, we present quasi-experimental evidence that neighborhoods affect intergenerational mobility through childhood exposure effects. In particular, the outcomes of children whose families move to a better neighborhood…” Link

Tags: , ,

The Impacts of Neighborhoods on Intergenerational Mobility: Childhood Exposure E↵ects and County-Level Estimates

The Impacts of Neighborhoods on Intergenerational Mobility: Childhood Exposure E↵ects and County-Level Estimates. Raj Chetty, Nathaniel Hendren, May 2015, Paper, “We characterize the e↵ects of neighborhoods on children’s earnings and other outcomes in adulthood by studying more than five million families who move across counties in the U.S. Our analysis consists of two parts. In the first part, we present quasi-experimental evidence that neighborhoods effect intergenerational mobility through childhood exposure effects. In particular, the outcomes of children whose families move to a better neighborhood – as measured by the outcomes of children already living there – improve linearly in proportion to the time they spend growing up in that area. We distinguish the causal e↵ects of neighborhoods from confounding factors by comparing the outcomes of siblings within families, studying moves triggered by displacement shocks, and exploiting sharp variation in predicted place e↵ects across birth cohorts, genders, and quantiles.Link

Tags: , , , ,

Where is the Land of Opportunity: The Geography of Intergenerational Mobility in the United States

Where is the Land of Opportunity: The Geography of Intergenerational Mobility in the United States. Raj Chetty, Nathaniel Hendren, June 2014, Paper. “We use administrative records on the incomes of more than 40 million children and their parents to describe three features of intergenerational mobility in the United States. First, we characterize the joint distribution of parent and child income at the national level. The conditional expectation of child income given parent income is linear in percentile ranks…” Link Verified October 12, 2014

Tags: , , ,

Where is the Land of Opportunity? The Geography of Intergenerational Mobility in the United States

Where is the Land of Opportunity? The Geography of Intergenerational Mobility in the United States. Raj Chetty, Nathaniel Hendren, June 2014, Paper. “We use administrative records on the incomes of more than 40 million children and their parents to describe three features of intergenerational mobility in the United States. First, we characterize the joint distribution of parent and child income at the national level. The conditional expectation of child income given parent income is linear in percentile ranks. On average, a 10 percentile increase in parent income is associated with a 3.4 percentile increase in a child’s income. Second, intergenerational mobility varies substantially across areas within the U.S…” Link

Tags: , ,