Welfare Analysis of Changing Notches : Evidence from Bolsa Família

Welfare Analysis of Changing Notches : Evidence from Bolsa Família

This paper develops a framework to bound the welfare impacts of reforms to notches using two sufficient statistics: (1) the number of households bunching at the old notch who move toward the new notch, and (2) the number of households who “jump” do...

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Main Authors: Bergstrom, Katy, Dodds, William, Rios, Juan
Format: Working Paper
Language:English
en_US
Published: Washington, DC : World Bank 2022
Subjects:
WELFARE ANALYSIS
NOTCHES
BUNCHING
JUMPING
MVPF
BOUNDS
SUFFICIENT STATISTICS
Online Access:http://documents.worldbank.org/curated/en/099711507052235480/IDU0f69873ca0eb3b0492f0b2040865d6808f430
http://hdl.handle.net/10986/37647
id okr-10986-37647
recordtype oai_dc
spelling okr-10986-376472022-07-07T05:10:43Z Welfare Analysis of Changing Notches : Evidence from Bolsa Família Bergstrom, Katy Dodds, William Rios, Juan WELFARE ANALYSIS NOTCHES BUNCHING JUMPING MVPF BOUNDS SUFFICIENT STATISTICS This paper develops a framework to bound the welfare impacts of reforms to notches using two sufficient statistics: (1) the number of households bunching at the old notch who move toward the new notch, and (2) the number of households who “jump” down to the new notch. The bounds hold in a wide class of models, highlighting a new way to use reduced-form bunching evidence for welfare analysis without strong assumptions on the economic environment. These two statistics are estimated using a difference-in-difference strategy for a reform to the anti-poverty program Bolsa Famılia, finding that the reform’s marginal value of public funds lies between 0.90 and 1.12. 2022-07-06T17:47:02Z 2022-07-06T17:47:02Z 2022-07 Working Paper http://documents.worldbank.org/curated/en/099711507052235480/IDU0f69873ca0eb3b0492f0b2040865d6808f430 http://hdl.handle.net/10986/37647 English en_US Policy Research Working Paper;10117 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC : World Bank Publications & Research Publications & Research :: Policy Research Working Paper Latin America & Caribbean Latin America Brazil
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic WELFARE ANALYSIS
NOTCHES
BUNCHING
JUMPING
MVPF
BOUNDS
SUFFICIENT STATISTICS
spellingShingle WELFARE ANALYSIS
NOTCHES
BUNCHING
JUMPING
MVPF
BOUNDS
SUFFICIENT STATISTICS
Bergstrom, Katy
Dodds, William
Rios, Juan
Welfare Analysis of Changing Notches : Evidence from Bolsa Família
geographic_facet Latin America & Caribbean
Latin America
Brazil
relation Policy Research Working Paper;10117
description This paper develops a framework to bound the welfare impacts of reforms to notches using two sufficient statistics: (1) the number of households bunching at the old notch who move toward the new notch, and (2) the number of households who “jump” down to the new notch. The bounds hold in a wide class of models, highlighting a new way to use reduced-form bunching evidence for welfare analysis without strong assumptions on the economic environment. These two statistics are estimated using a difference-in-difference strategy for a reform to the anti-poverty program Bolsa Famılia, finding that the reform’s marginal value of public funds lies between 0.90 and 1.12.
format Working Paper
author Bergstrom, Katy
Dodds, William
Rios, Juan
author_facet Bergstrom, Katy
Dodds, William
Rios, Juan
author_sort Bergstrom, Katy
title Welfare Analysis of Changing Notches : Evidence from Bolsa Família
title_short Welfare Analysis of Changing Notches : Evidence from Bolsa Família
title_full Welfare Analysis of Changing Notches : Evidence from Bolsa Família
title_fullStr Welfare Analysis of Changing Notches : Evidence from Bolsa Família
title_full_unstemmed Welfare Analysis of Changing Notches : Evidence from Bolsa Família
title_sort welfare analysis of changing notches : evidence from bolsa família
publisher Washington, DC : World Bank
publishDate 2022
url http://documents.worldbank.org/curated/en/099711507052235480/IDU0f69873ca0eb3b0492f0b2040865d6808f430
http://hdl.handle.net/10986/37647
_version_ 1764487601329274880

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