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PSLmodels / C-TAM

This repository provides code scripts and description for CPS Transfer Augmentation Model (C-TAM). This is an Open Source Model.
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Knob for welfare value of benefits #8

Closed MattHJensen closed 6 years ago

MattHJensen commented 7 years ago

Some users who want to assess the distributional consequences of repealing and replacing welfare and transfer programs might want to assume that a dollar of spending on the program does not equal a dollar of value to the recipient.

The classic case involves non-cash transfers. For example, Finkelstein, Hendren, and Luttmer find that, "Medicaid's welfare benefits to recipients per dollar of government spending range[s] from $0.2 to $0.4"

In order to accomodate budgetary analysis, we have been grossing up the amount of benefits received to hit federal spending aggregates. For the sake of distributional analysis, I propose adding a knob for each program that allows the user to discount the value of the benefits.

One might suggest only having knobs for non-cash benefits, but the welfare benefits of cash transfers could also fall below the amount of cash transfer received. This would happen if the program required required significant paperwork or distorted behavior across dimensions other than labor supply, which we will capture separately.

Therefore, I think we should have such a knob for every program.

cc @Amy-Xu @feenberg @martinholmer @andersonfrailey

Amy-Xu commented 7 years ago

That sounds reasonable, but I think the knobs should be in Tax-Calculator instead of here in Benefit?

MattHJensen commented 7 years ago

but I think the knobs should be in Tax-Calculator instead of here in Benefit?

That makes sense to me too. Let's leave this issue here for now and then move it over once we have initial benefit capabilities in Tax-Calculator.

Amy-Xu commented 7 years ago

@MattHJensen Should we start adding this function to TC? If so, I'll move this issue to TC and assign it to my coming intern. Is that ok?

MattHJensen commented 7 years ago

@Amy-Xu, I don't see how to move this to TC right now because we haven't integrated the spending programs into TC. Currently all spending-side analyses (for which the welfare-value of benefits is relevant) happen in stand alone scripts, which will soon be in open-source-economics/ubi-examples.

Amy-Xu commented 7 years ago

You're right. This issue should just stay here for now.

Amy-Xu commented 6 years ago

The benefit capabilities have been incorporated into both TC and PolicyBrain. Closing this issue.