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Simulating the reform of means-tested benefits with endogenous take-up and claim costs

Pudney, S and Hancock, R and Sutherland, H (2006) 'Simulating the reform of means-tested benefits with endogenous take-up and claim costs.' Oxford Bulletin of Economics and Statistics, 68 (2). 133 - 166. ISSN 0305-9049

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Abstract

Microsimulation models are commonly used to examine the distributional impact of reforms of the means-tested benefit system. Take-up behaviour is related to the level of entitlement, so reform may induce changes in take-up. We develop a stochastic simulation method and apply it to a probit model of 'income support' take-up by the UK pensioners. The method allows us to adjust net income for the welfare losses because of tangible or intangible claim costs. Endogenous take-up and claim costs both have an important impact on the simulated outcomes of the policy reform. © Blackwell Publishing Ltd., 2006.

Item Type: Article
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Faculty of Social Sciences > Institute for Social and Economic Research
Depositing User: Jim Jamieson
Date Deposited: 05 Dec 2013 12:27
Last Modified: 04 Feb 2019 17:15
URI: http://repository.essex.ac.uk/id/eprint/7848

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