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Eligibility Recertification and Dynamic Opt-in Incentives in Income-tested Social Programs: Evidence from Medicaid/CHIP

Listed author(s):
  • Zhuan Pei

    ()

    (Economics Department, Brandeis University)

Conventional labor supply studies assume the constant eligibility monitoring of income-tested program participants, but this is not true for most programs. For example, states can allow children to enroll in Medicaid/CHIP for 12 months regardless of family income changes. A long recertification period reduces monitoring costs but is predicted to induce program participation by temporary income adjustments. However, I find little evidence of strategic behavior from the Survey of Income and Program Participation. Given the lack of income responses, I propose a framework to compute the optimal recertification period and find 12 months to be its lower bound.

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File URL: http://www.brandeis.edu/departments/economics/RePEc/brd/doc/Brandeis_WP61.pdf
File Function: First version, 2013
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Paper provided by Brandeis University, Department of Economics and International Businesss School in its series Working Papers with number 61.

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Length: 50 pages
Date of creation: Aug 2013
Handle: RePEc:brd:wpaper:61
Contact details of provider: Postal:
MS032, P.O. Box 9110, Waltham, MA 02454-9110

Web page: http://www.brandeis.edu/departments/economics/

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