IDEAS home Printed from https://ideas.repec.org/a/wly/soecon/v66y2000i4p976-990.html
   My bibliography  Save this article

Welfare Policy: Cash Versus Kind, Self‐Selection and Notches

Author

Listed:
  • Nirvikar Singh
  • Ravi Thomas

Abstract

This paper investigates second‐best allocations where the government lacks full information about consumer types, and how such allocations may be implemented through notch schemes. Thus, we provide another rationale for notches in addition to that investigated by Blinder and Rosen (1985). We use a model of Blackorby and Donaldson (1988), extending their results to more general preferences and to more general tax‐subsidy instruments (piecewise linear, rather than linear). We argue that observed policies are sometimes of this nature: In‐kind subsidies that are available only if consumption equals or exceeds a particular amount have been used in practice, in housing, and medical care.

Suggested Citation

  • Nirvikar Singh & Ravi Thomas, 2000. "Welfare Policy: Cash Versus Kind, Self‐Selection and Notches," Southern Economic Journal, John Wiley & Sons, vol. 66(4), pages 976-990, April.
    • Handle: RePEc:wly:soecon:v:66:y:2000:i:4:p:976-990
    DOI: 10.1002/j.2325-8012.2000.tb00306.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/j.2325-8012.2000.tb00306.x
    Download Restriction: no
    File URL: https://libkey.io/10.1002/j.2325-8012.2000.tb00306.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Barr, Nicholas, 1992. "Economic Theory and the Welfare State: A Survey and Interpretation," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 741-803, June.
    2. Harvey S. Rosen, 1985. "Housing Behavior and the Experimental Housing-Allowance Program: What Have We Learned?," NBER Chapters, in: Social Experimentation, pages 55-94, National Bureau of Economic Research, Inc.
    3. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, December.
    4. Barr, Nicholas, 1992. "Economic theory and the welfare state : a survey and interpretation," LSE Research Online Documents on Economics 279, London School of Economics and Political Science, LSE Library.
    5. Riley, John G, 1979. "Informational Equilibrium," Econometrica, Econometric Society, vol. 47(2), pages 331-359, March.
    6. Burtless, Gary, 1990. "The Economist's Lament: Public Assistance in America," Journal of Economic Perspectives, American Economic Association, vol. 4(1), pages 57-78, Winter.
    7. Jerry A. Hausman & David A. Wise, 1980. "Discontinuous Budget Constraints and Estimation: The Demand for Housing," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(1), pages 75-96.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Didier Blanchet, 1996. "La référence assurantielle en matière de protection sociale : apports et limites," Économie et Statistique, Programme National Persée, vol. 291(1), pages 33-45.
    2. Kuhn, Andreas, 2011. "In the eye of the beholder: Subjective inequality measures and individuals' assessment of market justice," European Journal of Political Economy, Elsevier, vol. 27(4), pages 625-641.
    3. Murray, Christopher J. L. & Acharya, Arnab K., 1997. "Understanding DALYs," Journal of Health Economics, Elsevier, vol. 16(6), pages 703-730, December.
    4. Adelaide Duarte & Marta Simões & João Sousa Andrade, 2014. "Estado Social, Quantis, Não-Linearidades e Desempenho Económico: Uma Avaliação Empírica," GEMF Working Papers 2014-21, GEMF, Faculty of Economics, University of Coimbra.
    5. Andersen, Torben M., 2004. "Challenges to the Scandinavian welfare model," European Journal of Political Economy, Elsevier, vol. 20(3), pages 743-754, September.
    6. Alves, C. & Guizzo, D., 2022. "Economic Theory and Policy Today: Lessons from Barbara Wootton and the Creation of the British Welfare State," Cambridge Working Papers in Economics 2246, Faculty of Economics, University of Cambridge.
    7. Chiara Carini & Ericka Costa & Maurizio Carpita & Michele Andreaus, 2012. "The Italian Social Cooperatives in 2008: A Portrait Using Descriptive and Principal Component Analysis," Euricse Working Papers 1235, Euricse (European Research Institute on Cooperative and Social Enterprises).
    8. Fong, Christina, 2001. "Social preferences, self-interest, and the demand for redistribution," Journal of Public Economics, Elsevier, vol. 82(2), pages 225-246, November.
    9. Beraldo, Sergio & Montolio, Daniel & Turati, Gilberto, 2009. "Healthy, educated and wealthy: A primer on the impact of public and private welfare expenditures on economic growth," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(6), pages 946-956, December.
    10. Rainer Kotschy & David E. Bloom, 2022. "A Comparative Perspective on Long-Term Care Systems," NBER Working Papers 29951, National Bureau of Economic Research, Inc.
    11. Härpfer, Marco & Cacace, Mirella & Rothgang, Heinz, 2009. "And fairness for all? Wie gerecht ist die Finanzierung im deutschen Gesundheitssystem? Eine Berechnung des Kakwani-Index auf Basis der EVS," Working papers of the ZeS 04/2009, University of Bremen, Centre for Social Policy Research (ZeS).
    12. Giampaolo Arachi & Massimo D'Antoni, 2004. "Redistribution as Social Insurance and Capital Market Integration," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 11(4), pages 531-547, August.
    13. Lopez Garcia, Miguel-Angel, 2024. "Subsidios a la vivienda para los hogares de renta baja: un panorama," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 58, pages 33-69.
    14. Kuhn, Andreas, 2009. "In the Eye of the Beholder: Subjective Inequality Measures and the Demand for Redistribution," IZA Discussion Papers 4360, Institute of Labor Economics (IZA).
    15. Virginie PÉROTIN, 2001. "The voluntary sector, job creation and social policy: Illusions and opportunities," International Labour Review, International Labour Organization, vol. 140(3), pages 327-362, September.
    16. von Berchem, Sascha & Berthold, Norbert, 2004. "Reform der Arbeitslosenversicherung: Markt, Staat oder beides?," Discussion Paper Series 70, Julius Maximilian University of Würzburg, Chair of Economic Order and Social Policy.
    17. Richiardi, Matteo & He, Zhechun, 2020. "Measuring economic insecurity: a review of the literature," Centre for Microsimulation and Policy Analysis Working Paper Series CEMPA1/20, Centre for Microsimulation and Policy Analysis at the Institute for Social and Economic Research.
    18. Boarini, Romina & Le Clainche, Christine, 2009. "Social preferences for public intervention: An empirical investigation based on French data," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(1), pages 115-128, January.
    19. Johannes Schwarze, 1998. "Der Einfluß alternativer Konzeptionen von Alterssicherungssystemen auf Sicherungsniveau, Altersarmut und Einkommensverteilung: ein Vergleich zwischen Deutschland und den USA," Discussion Papers of DIW Berlin 160, DIW Berlin, German Institute for Economic Research.
    20. Sebastian Gechert, 2010. "Supplementary Private Health Insurance in Selected Countries: Lessons for EU Governments?," CESifo Economic Studies, CESifo, vol. 56(3), pages 444-464, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:soecon:v:66:y:2000:i:4:p:976-990. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)2325-8012 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.