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Conference Paper Italian Congress of Econometrics and Empirical Economics

Simulating the Reform of Means-Tested Benefits with Endogenous Take-Up and Claim Costs

Authors

Publication date

24 Jan 2005

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 British pensioners. The method allows us to adjust net income for the welfare losses due to tangible or intangible claim costs. Endogenous take-up and claim costs both have an important impact on the simulated outcomes of the policy reform.


Related publications

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

    Stephen Pudney, Ruth Hancock, and Holly Sutherland

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

    Stephen Pudney, Ruth Hancock, and Holly Sutherland

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