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Demographic behavior and the welfare state
Abstract The evaluation of the effects of tax and transfer programs on demographic behavior raises a number of difficult econometric issues related to identification of program effects. The main issue concerns whether there exists the true exogenous variation in program parameters necessary to estimate the effects of the program on behavior. This paper provides a discussion of the types of exogenous variation that are commonly available as well as the pitfalls in using potentially endogenous sources of variation. The general points are illustrated with an example drawn from the demographic literature in the United States. The paper concludes with a recommendation that the source of exogenous variation in program parameters be carefully examined in any study undertaken.
Demographic behavior and the welfare state
Abstract The evaluation of the effects of tax and transfer programs on demographic behavior raises a number of difficult econometric issues related to identification of program effects. The main issue concerns whether there exists the true exogenous variation in program parameters necessary to estimate the effects of the program on behavior. This paper provides a discussion of the types of exogenous variation that are commonly available as well as the pitfalls in using potentially endogenous sources of variation. The general points are illustrated with an example drawn from the demographic literature in the United States. The paper concludes with a recommendation that the source of exogenous variation in program parameters be carefully examined in any study undertaken.
Demographic behavior and the welfare state
Moffitt, Robert (author)
1989
Article (Journal)
English
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