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How do benefit adjustments for government transfer programs compare with their participants' inflation experiences?

  • Leslie McGranahan
  • Anna L. Paulson
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    The authors measure the inflation experienced by demographic groups that likely received benefits from major government transfer programs during the period 1980–2010. They then compare the group-specific inflation measures with the transfer programs’ benefit adjustments, which are typically based on aggregate inflation. The extent to which the program benefits keep up with group inflation differs across the programs and their targeted groups, depending on both the ways in which the benefits are adjusted for price changes and the spending patterns of the various groups.

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    File URL: http://www.chicagofed.org/digital_assets/publications/economic_perspectives/2011/4qtr2011_part2_mcgranahan_paulson.pdf
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    Article provided by Federal Reserve Bank of Chicago in its journal Economic Perspectives.

    Volume (Year): (2011)
    Issue (Month): Q IV ()
    Pages: 113-136

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    Handle: RePEc:fip:fedhep:y:2011:i:qiv:p:113-136:n:v.35no.4
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    1. Robert Haveman & Karen Holden & Kathryn Wilson & Barbara Wolfe, 2003. "Social security, age of retirement, and economic well-being: Intertemporal and demographic patterns among retired-worker beneficiaries," Demography, Springer, vol. 40(2), pages 369-394, May.
    2. Carlson, Andrea & Lino, Mark & Juan, WenYen & Hanson, Kenneth & Basiotis, P. Peter, 2007. "Thrifty Food Plan, 2006," CNPP Reports 42899, United States Department of Agriculture, Center for Nutrition Policy and Promotion.
    3. Bart Hobijn & David Lagakos, 2005. "Inflation Inequality In The United States," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 51(4), pages 581-606, December.
    4. Bruce D. Meyer & Dan T. Rosenbaum, 1998. "Welfare, the Earned Income Tax Credit, and the Labor Supply of Single Mothers," JCPR Working Papers 32, Northwestern University/University of Chicago Joint Center for Poverty Research.
    5. Hanson, Kenneth & Andrews, Margaret S., 2008. "Rising Food Prices Take a Bite Out of Food Stamp Benefits," Economic Information Bulletin 58624, United States Department of Agriculture, Economic Research Service.
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