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Measurement error in models of welfare participation

Hernandez, M and Pudney, S (2007) 'Measurement error in models of welfare participation.' Journal of Public Economics, 91 (1-2). pp. 327-341. ISSN 0047-2727

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We consider the problem of modeling welfare participation when measurement error may affect simulated welfare entitlement. We identify a flaw in past implementations of the ML approach and develop a more appropriate ML approach. A model of welfare participation is estimated for British pensioners, linking the probability of participation to the value of benefit entitlement, incorporating the nonlinear rule relating entitlement to the household's income and financial assets. The model is used to evaluate the claim costs incurred by participants. When we allow for measurement errors in income and assets, estimated claim costs are substantially reduced.

Item Type: Article
Uncontrolled Keywords: Benefit take-up; Program participation; Welfare; Duclos; Measurement error; Maximum likelihood
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Faculty of Social Sciences
Faculty of Social Sciences > Institute for Social and Economic Research
SWORD Depositor: Elements
Depositing User: Elements
Date Deposited: 19 Sep 2013 15:14
Last Modified: 06 Jan 2022 13:29

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