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Information and participation in a social program

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Author Info

  • David Coady

    ()
    (International Monetary Fund (IMF))

  • Cesar Martinelli

    ()
    (Centro de Investigacion Economica (CIE), Instituto Tecnologico Autonomo de Mexico (ITAM))

  • Susan Parker

    ()
    (Centro de Docencia e Investigación Económica)

Abstract

Participation in a social program, like that in clubs and other social organizations, is the result of a process in which an agent first learns about the requirements, benefits, and the likelihood of acceptance, applies for membership, and finally is accepted or rejected. At each stage of the process, decisions made by the agent are responsive to expectations about the decisions and outcomes at the following stages. We propose a model of the participation process and estimate it using data from a social program in Mexico. We are able to distinguish empirically between information costs and other application costs, and show that self-selection due to information costs in fact contributes to targeting the program to the poorest families.

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File URL: http://ftp.itam.mx/pub/academico/inves/martinelli/08-06.pdf
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Bibliographic Info

Paper provided by Centro de Investigacion Economica, ITAM in its series Working Papers with number 0806.

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Length: 26 pages
Date of creation: Sep 2008
Date of revision:
Handle: RePEc:cie:wpaper:0806

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Web page: http://cie.itam.mx/
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Related research

Keywords: Program participation; take up; information aquisition; targeting; undercoverage; leakage;

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References

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  1. Pudney, Stephen & Monica Hernandez & Ruth Hancock, 2003. "The Welfare Cost of Means-Testing: Pensioner Participation in Income Support," Royal Economic Society Annual Conference 2003 171, Royal Economic Society.
  2. James J. Heckman & Jeffrey A. Smith, 2003. "The Determinants of Participation in a Social Program: Evidence from a Prototypical Job Training Program," NBER Working Papers 9818, National Bureau of Economic Research, Inc.
  3. Anna Aizer, 2007. "Public Health Insurance, Program Take-Up, and Child Health," The Review of Economics and Statistics, MIT Press, vol. 89(3), pages 400-415, August.
  4. Anna Aizer, 2003. "Low Take-Up in Medicaid: Does Outreach Matter and for Whom?," American Economic Review, American Economic Association, vol. 93(2), pages 238-241, May.
  5. Duclos, Jean-Yves, 1995. "Modelling the take-up of state support," Journal of Public Economics, Elsevier, vol. 58(3), pages 391-415, November.
  6. Cesar Martinelli & Susan W Parker, 2007. "Deception and Misreporting in a Social Program," Levine's Bibliography 843644000000000191, UCLA Department of Economics.
  7. Blundell, Richard & Fry, Vanessa & Walker, Ian, 1987. "Modelling the Take-up of Means-tested Benefits: the Case of Housing Benefits in the United Kingdom," Economic Journal, Royal Economic Society, vol. 98(390), pages 58-74, Supplemen.
  8. repec:ese:iserwp:2006-29 is not listed on IDEAS
  9. Moffitt, Robert, 1983. "An Economic Model of Welfare Stigma," American Economic Review, American Economic Association, vol. 73(5), pages 1023-35, December.
  10. Ravallion, Martin, 1996. "Issues in measuring and modeling poverty," Policy Research Working Paper Series 1615, The World Bank.
  11. Besley, Timothy & Coate, Stephen, 1992. "Workfare versus Welfare Incentive Arguments for Work Requirements in Poverty-Alleviation Programs," American Economic Review, American Economic Association, vol. 82(1), pages 249-61, March.
  12. Hernandez, Monica & Pudney, Stephen, 2007. "Measurement error in models of welfare participation," Journal of Public Economics, Elsevier, vol. 91(1-2), pages 327-341, February.
  13. Micklewright, John & Coudouel, Aline & Marnie, Sheila, 2004. "Targeting and Self-Targeting in a New Social Assistance Scheme," IZA Discussion Papers 1112, Institute for the Study of Labor (IZA).
  14. Parker, Susan W. & Rubalcava, Luis & Teruel, Graciela, 2008. "Evaluating Conditional Schooling and Health Programs," Handbook of Development Economics, Elsevier.
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