Welfare Analysis of Changing Notches : Evidence from Bolsa Família
This paper develops a framework to bound the welfare impacts of reforms to notches using two sufficient statistics: (1) the number of households bunching at the old notch who move toward the new notch, and (2) the number of households who “jump” down to the new notch. The bounds hold in a wide class of models, highlighting a new way to use reduced-form bunching evidence for welfare analysis without strong assumptions on the economic environment. These two statistics are estimated using a difference-in-difference strategy for a reform to the anti-poverty program Bolsa Famılia, finding that the reform’s marginal value of public funds lies between 0.90 and 1.12.
| Main Authors: | , , |
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| Format: | Working Paper biblioteca |
| Language: | English en_US |
| Published: |
Washington, DC : World Bank
2022-07
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| Subjects: | WELFARE ANALYSIS, NOTCHES, BUNCHING, JUMPING, MVPF, BOUNDS, SUFFICIENT STATISTICS, |
| Online Access: | http://documents.worldbank.org/curated/en/099711507052235480/IDU0f69873ca0eb3b0492f0b2040865d6808f430 http://hdl.handle.net/10986/37647 |
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