welfare reform and unemployment in new zealand in the early 1990s new zealand cut benefits and tightened eligibility criteria under its main social welfare programmes these benefit changes varied substantially across both time and demographic groups synthetic panel data are used econometrically to isolate the effects of these reforms on several dimensions of unemployment behaviour a simple theoretical model suggests that cutting benefits could either increase or decrease excess labour supply our results indicate that these reforms increased the official unemployment rate by nearly one quarter of a percentage point but significantly reduced broader measures of economic inactivity or the under utilization of labour in the new zealand economy

household labor supply and welfare participation in sweden using a sample of swedish households we estimate a household labor supply model assuming that preferences for consumption and leisure can be described by a direct translog utility function the labor supply and welfare participation decisions are treated as a discrete choice problem and we assume that these choices follow a simple conditional logit rule in addition we allow unobserved individual specific effects to be correlated across alternatives we assume that these unobserved effects are drawn from a discrete distribution and the correlation across alternatives is modeled using factor loading techniques classification error in hours is allowed for by using a multiplicative measurement error specification the estimates from the structural model yield inelastic labor supply among husbands and positive wage elasticity for wives further the cross elasticities are close to zero

variable earnings and nonlinear taxation tax and transfer programs transform before tax income into after tax income income is variable and the tax and transfer system is nonlinear i e marginal tax rates vary we show that as a consequence the tax and transfer system punishes and rewards income variability we calculate the effect of the nonlinearity for several components of the u s tax and transfer system focusing on the low income population we find that the system rewards variability for some individuals and penalizes it for others we conclude that the tax and transfer system punishes and rewards variability in a manner that is both substantial and capricious

modelling the take up of state support abstract we discuss the modelling of the take up of state support by going beyond the standard analysis and recognising that both the researcher and the welfare agency make errors is assessing entitlement we apply the discussion to an examination of the take up of supplementary benefits in britain by explicitly modelling the costs to taking up state support we can illustrate how these costs can dampen the welfare impact of state support and mitigate or aggravate welfare agency errors in assessing entitlement

income working hours and happiness abstract in empirical analyses the effect of income on happiness tends to be underestimated by ignoring the fact that income has to be earned using the german socio economic panel our analysis confirms this tendency for men the underestimation amounts to 25

food stamps and food insecurity what can be learned in the presence of nonclassical measurement error policymakers have been puzzled to observe that food stamp households appear more likely to be food insecure than observationally similar eligible nonparticipating households we reexamine this issue allowing for nonclassical reporting errors in food stamp participation and food insecurity extending the literature on partially identified parameters we introduce a nonparametric framework that makes transparent what can be known about conditional probabilities when a binary outcome and conditioning variable are both subject to nonclassical measurement error we find that the food insecurity paradox hinges on assumptions about the data that are not supported by the previous food stamp participation literature

the welfare cost of means testing pensioner participation in income support we estimate parametric and semi parametric binary choice models of benefit take up by british pensioners and use a revealed preference argument to infer the cash equivalent value of disutility arising from stigma or complexity of the claims process these implicit costs turn out to be relatively small averaging about 3 4 per week across income support recipients using the foster greer thorbecke measure of poverty among pensioners we find that allowing for implicit claim costs incurred by benefit recipients raises the measured degree of poverty by not more than 13 copyright 2007 john wiley sons ltd

corruption fertility and human capital abstract we build an overlapping generations model in which reproductive households face a child quantity child quality trade off and bureaucrats are delegated with the task of delivering public services that support the accumulation of human capital by integrating the theoretical analyses of endogenous growth corruption and fertility choices we show that the negative relation between fertility and economic development may also be affected by differences in the magnitude of bureaucratic corruption

time inconsistency and welfare program participation evidence from the nlsy we empirically implement a dynamic structural model of labor supply and welfare program participation for agents with potentially time inconsistent preferences using panel data on the choices of single women with children from the nlsy 1979 we provide estimates of the degree of time inconsistency and of its influence on the welfare take up decision with these estimates we conduct counterfactual experiments to quantify the utility loss stemming from the inability to commit to future decisions and the potential utility gains from commitment mechanisms such as welfare time limits and work requirements

an employment approach to urban poverty alleviation employment patterns of afdc recipients the milwaukee experience 1989 93 major changes are underway in the american programme to aid mothers with dependent children one major component of the proposed changes is a work requirement for mothers to begin to explore what problems and opportunities may be created by a work requirement this paper explores several questions related to the work and earnings experience of a cohort of 42 000 aid recipients in an urban county among the several findings is the fact that about 70 per cent of the welfare recipients have recent work experience for some the experience is limited for others especially those known to have left welfare it is extensive the earnings produced from work range from basically pocket change to well in excess of us 16 500 per year the implications for policy changes vary with one s perspective what is clear is that some recipients can earn more than welfare for others such earnings will be more difficult

an economic model of welfare stigma perhaps the most basic assumption of the economic theory of consumer demand is that more is better than less virtually all of the major propositions of consumer theory can in a certain sense be derived from the assumption that goods are good interestingly however this tenet seems to be violated by the behavior of many individuals in the low income population for many turn out to be eligible for a positive welfare benefit but do not in fact join the welfare rolls for example it has been estimated that in 1970 only about 69 percent of the families eligible for afdc aid to families with dependent children participated in the program see richard michel 1980 the corresponding percentage for afdc u the program for which families with an unemployed male are eligible was only 43 percent and the participation rate in the food stamp program was only 38 percent see maurice mcdonald 1977 this phenomenon has puzzled many investigators because such individuals do not locate on the boundaries of their budget sets consequently most investigators ignore the problem when studying the effects of welfare programs on behavior in this paper this seemingly irrational rejection of an increase in income is modeled as resulting from welfare stigma that is from disutility arising from participation in a welfare program per se 1 the existence of stigma has been amply documented in the sociological literature patrick horan and patricia austin 1974 lee rainwater 1979 where interviews of recipients have often uncovered feelings of lack of self respect and negative self characterizations from participation in welfare nevertheless this phenomenon has not been modeled and many questions consequently remain when is the disutility of participation strong enough to prevent participation shouldn t we expect individuals to weigh the disutility of participation against the potential benefit in their decisions what is the elasticity of participation with respect to the potential benefit also in a slightly different vein how are the work disincentives of welfare affected by stigma these questions have been given scant attention by economists yet they are crucial for our ability to predict the impact of various welfare programs on the lowincome population here these questions are addressed by modeling nonparticipation as a utility maximizing decision the model is developed and estimated for the afdc program 2 the model posits an individual utility function containing not just disposable income but

labor supply response to welfare programs a dynamic analysis previous static analyses of the work disincentive effects of welfare programs are extended to a dynamic context using a sample of continuous longitudinal labor market histories estimates are derived for welfare nonwelfare differences in labor market flows among the states of employment unemployment and nonparticipation the estimates are used to identify the main sources of the lower employment and labor force participation rates and higher unemployment rate of welfare recipients the findings indicate that welfare programs have substantial effects on virtually every labor market transition examined but that the primary source of the static work disincentive effect is slower entry into employment

the economic effect of the canadian bse outbreak on the us economy before the discovery of the first bovine spongiform encephalopathy bse cow in may 2003 canada was the most important exporter of live cattle into the us with a share of 74 of us total live cattle imports with the outbreak of bse in canada the us ceased imports of canadian cattle and beef products this study analyses the short to medium term effect of the import trade ban for the us economy using a 20 sector economy wide computable general equilibrium cge model uncertainty about exogenous elasticity values was addressed using monte carlo techniques beneficiaries of the trade ban are the cattle industry and related sectors such as feed production and agricultural service providers the us economy as a whole however is negatively affected with a loss of 1 7 billion in gross domestic product and 11000 jobs the model shows how the restriction on canadian cattle imports generates income losses for both rich and poor households in the us

eco innovations in developing countries the case of manaus free trade zone brazil innovations focused on sustainability are called in academic papers sustainable innovations environmental innovations eco innovations or green innovations this is an emerging subject whose terms and concepts are still not fully consolidated in addition literature review indicates the need to identify the challenges to the implementation of eco innovations in developing countries especially in resource rich regions such is the case of the manaus free trade zone mftz in brazil this research aims to identify factors that promote or inhibit eco innovations in this context by analyzing the impact of these drivers and companies orientation to innovation this is a case study that aimed at assessing industries of the mftz data was collected through in depth interviews direct observation and analyses of formal documentation data collected was analysed through content analysis the results obtained demonstrated despite the region s vocation for environmental issues initiatives on eco innovations are still scarce the companies studied were also dependent on their headquarters which means that there is little concern over local issues and investment in eco innovations is low in conclusion this study makes a theoretical and practical contribution to research on eco innovation firstly it analyses drivers of eco innovation in developing countries especially in free trade zones new drivers have been identified and those presented in previous researches demonstrated that their impact on eco innovations is less significant secondly it provides a panoramic understanding of the main eco innovation processes as local condition to develop eco innovation finally it offers significant insights for researchers and experts who are challenged by the need to perform sustainability from an eco innovation point of view difficulties and hindrances to eco innovate

the econometrics of piecewise linear budget constraints a survey and exposition of the maximum likelihood method in this article maximum likelihood techniques for estimating consumer demand functions when budget constraints are piecewise linear are exposited and surveyed consumer demand functions are formally derived under such constraints and it is shown that the functions are themselves nonlinear as a result the econometric problems in estimating such functions are exposited and the importance of the stochastic specification is stressed in particular the specification of both unobserved heterogeneity of preferences and measurement error econometric issues in estimation and testing are discussed and the results of the studies that have been conducted to date are surveyed

compensating for public harms why public goods are preferred to money this paper provides evidence that public goods represent a more acceptable response to public harms than monetary compensation we demonstrate a preference for public goods over monetary compensation in part because receipt of public goods may limit the sense of guilt or bribery from accepting compensation for the injury more surprising this preference for public goods over money in the presence of a harm remains in a free market choice where guilt is not an issue it appears that public goods psychologically mitigate or balance public harms in a way that makes them more valuable in the presence of public harms

empirical generalizations in eco innovation a meta analytic approach abstract although discussions on eco innovation are ongoing and the concept is evolving its central idea is highly stimulating thus a great number of studies has been conducted in recent years around the world based on different perspectives contexts and outcomes therefore the identification and analysis of factors related to eco innovation are essential if knowledge in this field is to be improved and consolidated this research aimed to advance our understanding of the different dimensions of eco innovation through a meta analytical review of its antecedents or drivers consequents and moderators thus a total of 71 studies was analysed generating 818 effect sizes and 220 582 cumulative samples the main findings revealed that barriers company capabilities environmental regulation market turbulence information sources r d and company size were significant antecedents to eco innovation it was also noted that a significance relationship exists between eco innovation and firm performance regarding the moderating effect it was observed that culture the economic situation of the country and context influence the relationship between eco innovation and performance the results revealed that countries with a lower hdi presented stronger effects between eco innovation and firm performance than countries with a higher hdi these findings were interesting because they could demonstrate that eco innovation tends to promote more competitive advantage in countries with environmental problems and consequently a lower hdi

redefining innovation eco innovation research and the contribution from ecological economics while innovation processes toward sustainable development eco innovations have received increasing attention during the past years theoretical and methodological approaches to analyze these processes are poorly developed against this background the term eco innovation is introduced in this paper addressing explicitly three kinds of changes towards sustainable development technological social and institutional innovation secondly the potential contribution of neoclassical and co evolutionary approaches from environmental and innovation economics to eco innovation research is discussed three peculiarities of eco innovation are identified the double externality problem the regulatory push pull effect and the increasing importance of social and institutional innovation while the first two are widely ignored in innovation economics the third is at the least not elaborated appropriately the consideration of these peculiarities may help to overcome market failure by establishing a specific eco innovation policy and to avoid a technology bias through a broader understanding of innovation finally perspectives for a specific contribution of ecological economics to eco innovation research are drawn it is argued that methodological pluralism as established in ecological economics would be very beneficial for eco innovation research a theoretical framework integrating elements from both neoclassical and evolutionary approaches should be pursued in order to consider the complexity of factors influencing innovation decisions as well as the specific role of regulatory instruments and the experience gathered in ecological economics integrating ecological social and economic aspects of sustainable development is highly useful for opening up innovation research to social and institutional changes 2000 elsevier science b v all rights reserved

determinants of environmental innovation new evidence from german panel data sources abstract in most cases empirical analyses of environmental innovations based on firm level data relied on surveys for one point in time these surveys allow for the inclusion of many explanatory variables such as different policy instruments or the influence of pressure groups but it is not possible to address the dynamic character of environmental innovations this paper uses two german panel databases the establishment panel of the institute for employment research iab and the mannheim innovation panel mip of the centre for european economic research zew to explore the determinants of environmental innovations the econometric estimations show that the improvement of the technological capabilities knowledge capital by r d triggers environmental innovations environmental regulation environmental management tools and general organizational changes also encourage environmental innovation a result that has also been postulated by the famous porter hypothesis

conspicuous consumption snobbism and conformism abstract we develop a model in which consumers purchase a conspicuous good in order to signal high income and thereby achieve greater social status in equilibrium the signalling value of conspicuous consumption depends in an identifiable way on the number of consumers and consumer behaviour is characterized by either snobbism or conformism the market demand curve for the conspicuous good may exhibit a positive slope if consumers are conformist we derive some unconventional policy implications concerning the taxation of luxuries and the voluntary provision of public goods

determinants of environmental innovation in us manufacturing industries abstract this paper provides new evidence on the determinants of environmental innovation we employ panel data models to study how environmental innovation by us manufacturing industries responded to changes in pollution abatement expenditures and regulatory enforcement during the period 1983 through 1992 we find that 1 environmental innovation as measured by the number of successful environmental patent applications granted to the industry responded to increases in pollution abatement expenditures however 2 increased monitoring and enforcement activities related to existing regulations did not provide any additional incentive to innovate we also find some empirical evidence that environmental innovation is more likely to occur in industries that are internationally competitive

child support welfare dependency and poverty female headed families have among the highest poverty rates of any major demographic group in the united states the purpose of this paperis to investigate empirically the effectiveness of current child support enforcement policies and to determine their role in reducing poverty and welfare dependency a special supplement to the april 1982 current population survey provides the data for the analysis the results indicate that child support enforce ment may represent an effective means for re ducing welfare program costs but isunlikely to have a dramatic effect on either welfare de pendency or poverty copyright 1986 by american economic association

the effects of local labour market conditions on welfare programme participation a fractional imputation method is applied to iowa administrative data to deal with a problem of missing data the effects of local labour market conditions and mobility of household heads on family investment program fip participation are evaluated results show that mobility increases the opportunity for employment and decreases the fip participation rate for low income families an increase in predicted unemployment rates decreases labour force participation and increases programme participation an increase in unpredicted unemployment rates increases labour force participation and decreases programme participation overall the effects are relatively larger in rural areas than in nonrural areas in iowa

estimating labor supply responses and welfare participation using a natural experiment to validate a structural labor supply model in this paper we formulate and estimate an economic model of labor supply and welfare participation the model is estimated on data on single men from quebec drawn from the 1986 canadian census budget sets for each work welfare combination accounting for income taxes tax credits and welfare benefit rules are derived using a microsimulation model we validate our model by comparing reactions to a welfare reform that implied a dramatic increase in welfare benefits predicted by our model to those obtained by using a regression discontinuity approach the results show that our model is capable of recovering actual changes in labor supply and welfare participation we also show the advantage of having estimated a structural model by illustrating how labor supply and welfare participation change when benefit levels change

why did the ssi disabled program grow so much disentangling the effect of medicaid the number of participants in the ssi program grew by 1 1 million from 1987 to 1993 this paper examines the role of medicaid on the ssi participation decision i use the rapid growth in average medicaid expenditure as a proxy for its value ols estimates of medicaid s effect may be biased because of omitted variables bias and measurement error i therefore apply two stage least squares to estimate medicaid s effect using average medicaid expenditure for blind ssi recipients as an instrument these estimates show that rising medicaid expenditure significantly increased ssi participation among adults with low permanent incomes explaining 20 of the growth

explaining and forecasting results of the self sufficiency project this paper studies the self sufficiency project ssp a controlled randomized experiment concerning welfare by estimating a model of endogenous skill accumulation multidimensional job opportunities and time varying opportunity costs of labour market time methods for estimating dynamic programming models with unobserved heterogeneity are extended to account for unexpected policy interventions and endogenous sample selection and initial conditions parameters are identified and consistently estimated by imposing optimal responses to the exact form of the ssp earnings supplement and the experimental program which induces exogenous variation between treatment groups and within groups as treatment progresses the estimated model tracks primary outcomes well in and out of sample except for underestimating trends in the sample of new welfare applicants predictions from counterfactual experiments run counter to non structural results reported elsewhere and they suggest that details of the ssp s design are critical for interpretation of results the separate ssp plus treatment may have longer lasting and more generalized impacts than the in sample impacts suggest copyright oxford university press