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Allocation problems in child benefit programs using a microeconomic theory approach

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  • Tomas Artemio Marinozzi

Abstract

This paper intends to illustrate theoretical bases for positive factors as well as major problems associated with UCT and CCT programs. It is important to highlight that there is diverse empirical evidence regarding support schemes and their effects on schooling, health and nutrition. However, literature regarding the allocation of child benefit transfers between household members is rather limited. This paper provides a theoretical explanation of how conventional child benefit programs may have transmission problems, which may prove to be counterproductive in terms of social welfare. The allocation flaws are evident in the model and are very intuitive, however similar schemes have prevailed in practice. It is unclear to what extent these perceptions are borne out of a concern for children's (or individuals') wellbeing or are guided by political interests. For this reason, the last section of the paper offers a different perspective on certain programs, taking into consideration political incentives. The final aim is not necessarily to provide an optimal scheme but instead to draw attention to certain features of child benefit programs under a clear microeconomic scope.

Suggested Citation

  • Tomas Artemio Marinozzi, 2021. "Allocation problems in child benefit programs using a microeconomic theory approach," CEMA Working Papers: Serie Documentos de Trabajo. 775, Universidad del CEMA.
    • Handle: RePEc:cem:doctra:775
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    More about this item

    Keywords

    Child Benefit Programs; Family Economics; Conditional Cash Transfer Programs; Unconditional Cash Transfer Programs.;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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