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Welfare Reform’s Effect on State Public Welfare Budget Shares

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  • Compton, Andrew D.

Abstract

This article examines the effect of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 on state budget shares for public welfare programs between 1991 and 2011. The model is a composite of prior research. In particular, I utilize a balance wheel model adjusted to model budget shares. This model shares many similarities with prior political economy model. Welfare Reform ended many traditional welfare programs and created new ones with more restrictions on recipients. Prior research shows that expenditures have fallen for traditional programs, but little is concluded about new programs and overall expenditures on public welfare programs as they relate to the total budget. The findings of this research are largely inconclusive, but more data and stronger tests could confirm or reject the null hypotheses with more robustness.

Suggested Citation

  • Compton, Andrew D., 2013. "Welfare Reform’s Effect on State Public Welfare Budget Shares," SS-AAEA Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 2013, pages 1-19.
    • Handle: RePEc:ags:ssaaea:187008
    DOI: 10.22004/ag.econ.187008
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    References listed on IDEAS

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    1. Gordon F. De Jong & Deborah Roempke Graefe & Shelley K. Irving & Tanja St. Pierre, 2006. "Measuring State TANF Policy Variations and Change After Reform," Social Science Quarterly, Southwestern Social Science Association, vol. 87(4), pages 755-781, December.
    2. James R. Hines, 2006. "Will Social Welfare Expenditures Survive Tax Competition?," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 22(3), pages 330-348, Autumn.
    3. Baicker, Katherine, 2001. "Government decision-making and the incidence of federal mandates," Journal of Public Economics, Elsevier, vol. 82(2), pages 147-194, November.
    4. Harris, Richard D. F. & Tzavalis, Elias, 1999. "Inference for unit roots in dynamic panels where the time dimension is fixed," Journal of Econometrics, Elsevier, vol. 91(2), pages 201-226, August.
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