Found 11 article(s) for author 'Welfare'

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

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Popular Acceptance of Inequality due to Innate Brute Luck and Support for Classical Benefit-Based Taxation

Popular Acceptance of Inequality due to Innate Brute Luck and Support for Classical Benefit-Based Taxation. Matthew Weinzierl, September 9, 2017, Paper, “U.S. survey respondents’ views on distributive justice differ in two specific, related ways from what is conventionally assumed in modern optimal tax research. When expressing their preferences over allocations in stylized, hypothetical scenarios meant to isolate key features of the tax problem, a large share of respondents resist the full equalization of unequal outcomes due to innate brute luck that standard analyses recommend. A similar share prefer a classical benefit-based logic for taxes over the conventional logic of diminishing marginal social welfare. Moreover, these two views are linked: respondents who more strongly resist equalization are more likely to prefer the classical benefit-based principle. Though the Amazon Mechanical Turk survey population is not a representative sample of the U.S. population, robustness of these results across demographic traits and political views suggests that a large share of the American public holds views inconsistent with standard welfarist objectives.Link

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Production and Welfare: Progress in Economic Measurement

Production and Welfare: Progress in Economic Measurement. Dale Jorgenson, 2017, Paper, “While the GDP was intended by its originators as a measure of production, the absence of a measure of welfare in the national accounts has led to widespread misuse of the GDP to proxy welfare. Measures of welfare are needed to appraise the outcomes of changes in economic policies and evaluate the results. Concepts that describe the income distribution, such as poverty and inequality, fall within the scope of welfare rather than production. This paper reviews recent advances in the measurement of production and welfare within the national accounts, primarily in the United States and the international organizations. Expanding the framework beyond the national accounts has led to important innovations in the measurement of both production and welfare.Link

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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

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Globalization, Inequality and Welfare

Globalization, Inequality and Welfare. Pol Antras, September 19, 2016, Paper, “This paper studies the welfare implications of trade opening in a world in which trade raises aggregate income but also increases income inequality, and in which redistribution needs to occur via a distortionary income tax-transfer system. We provide tools to characterize and quantify the effects of trade opening on the distribution of disposable income (after redistribution). We propose two adjustments to standard measures of the welfare gains from trade: a ‘welfarist’ correction inspired by the Atkinson (1970) index of inequality, and a ‘costly-redistribution’ correction capturing the efficiency costs associated with the behavioral responses of agents to trade-induced shifts across marginal tax rates.Link

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Understanding the Socioeconomic Gradient in Disability Insurance Receipt

Understanding the Socioeconomic Gradient in Disability Insurance Receipt. David Cutler, August 3, 2016, Paper, “There is a well-known socioeconomic gradient in disability insurance receipt. As Figure 1 shows, 9.0% of people aged 50-52 with a high school degree or less receive Social Security Disability Insurance or Supplemental Security Insurance, compared to 4.3% of those with some college or more.  As people age, the gap between the more and less educated expands. Between the low 50s and the low 60s, SSDI/SSI receipt rises by 6.2 percentage points among the less educated, compared to only 2.4 percentage points among the better educated. The result is that one in six people with a high school degree or less is receiving SSDI/SSI by age 62, compared to one in fifteen people with some college education. Understanding why disability insurance receipt is so tilted to the less educated is key to evaluating the economic importance of disability insurance as well as forecasting future trends.Link

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Transnational Social Protection: Setting the Agenda

Transnational Social Protection: Setting the Agenda, Jocelyn Viterna, August 2016, Paper, “In todays’ world, more than 220 million people live in a country that is not their own.  Nevertheless, the provision of social welfare is primarily carried out by nations. How are people on the move protected and provided for in the contemporary global context? Have institutional sources of social welfare begun to cross borders to meet the needs of individuals who live transnational lives? This introductory paper proposes a transnational social protection (TSP) research agenda designed to map the kinds of protections that exist for people on the move, determine how these protections travel across borders, and analyze variations in access to these protections. The paper defines TSP; introduces the heuristic tool of a “resource environment” to map and analyze variations in TSP over time, through space, and across individuals; and provides empirical examples demonstrating the centrality of TSP for scholars of states, social welfare, development, and migration.Link

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Discovering and Explaining Systematic Bias and Nontransparency in US Social Security Administration Forecasts

Discovering and Explaining Systematic Bias and Nontransparency in US Social Security Administration Forecasts. Gary King, March 18, 2016, Paper. “Some data shared: in difficult, disorganized, non-automated formats Some impossible to share: informal, qualitative methods; eg, committees choosing huge numbers of adjustable parameters Much could be shared but is not (with the public, the scientific community, US …Link

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China’s Rise and American Welfare

China’s Rise and American Welfare. Robert Z. Lawrence, May 7, 2015, Paper. “The strong performance of China over the past decade, and forecasts that it could be sustained in the decades ahead, does not meet acclaim in all quarters, especially the United States. American international economic policy has traditionally presumed that foreign economic growth is in America’s economic interest. As President Kennedy once put it, “a rising tide lifts all boats.” But when it comes to China’s rise, many are not so certain. The American public is primarily worried about jobs, and when emerging economies grow rapidly by exporting ...” Link

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Maximising happiness does not maximise welfare

Maximising happiness does not maximise welfare, Edward Glaeser, October 15, 2014, Opinion. “Governments are now measuring happiness, or subjective wellbeing, and some have begun trying to maximise it. This column discusses recent research showing that happiness is not the same thing as utility. The choices people make suggest that they have desires and objectives other than happiness. It is therefore possible to make people worse off while increasing their reported subjective wellbeing…” Link

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