17 March 2017
Justine S. Hastings
and Jesse M. Shapiro
study the spending patterns of Supplemental Nutrition Assistance Program (SNAP) participants. They estimate that the marginal propensity to consume SNAP-eligible food out of SNAP benefits is between 0.5 and 0.6, much higher than the propensity to consume such food out of cash income. The findings suggest that beneficiaries do not regard SNAP benefits as cash-equivalent.
16 March 2017
State requirements that students obtain a tetanus, diphtheria, and pertussis (Tdap) booster prior to middle school entry increased vaccine take-up by 29 percent and reduced whooping cough incidence in the population by 53 percent in a study by Christopher S. Carpenter
and Emily C. Lawler
15 March 2017
Price-linked subsidies in health insurance programs, in which subsidies depend on the prices set by competing insurers, weaken price competition, leading to higher markups and subsidy costs for the government, according to research by Sonia P. Jaffe
and Mark Shepard
. Price-linking increases prices by up to 5 percent.
14 March 2017
Rich and poor households source their consumption from different parts of the firm size distribution, a study byBenjamin Faber
and Thibault Fally
finds. Larger, more productive firms cater more to the taste of wealthier households. This generates differences in inflation rates across households, amplifies nominal income inequality over time, and leads to a more regressive distribution of gains from international trade.
13 March 2017
In a 2004 program designed to motivate Chinese bureaucrats to reduce accidental deaths, each province received a ‘death ceiling’ that, if exceeded, would impede government officials' promotions. Raymond Fisman
and Yongxiang Wang
observe a sharp discontinuity in reported deaths at the ceiling, suggestive of manipulation. Provinces with safety incentives for municipal officials experienced larger declines in accidental deaths.