Targeting with In-Kind Transfers: Evidence from Medicaid Home Care

S-Tier
Journal: American Economic Review
Year: 2019
Volume: 109
Issue: 4
Pages: 1461-85

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Making a transfer in kind reduces its value to recipients but can improve targeting. We develop an approach to quantifying this trade-off and apply it to home care. Using randomized experiments by Medicaid, we find that in-kind provision significantly reduces the value of the transfer to recipients while targeting a small fraction of the eligible population that is sicker and has fewer informal caregivers than the average eligible. Under a wide range of assumptions within a standard model, the targeting benefit exceeds the distortion cost. This highlights an important cost of recent reforms toward more flexible benefits.

Technical Details

RePEc Handle
repec:aea:aecrev:v:109:y:2019:i:4:p:1461-85
Journal Field
General
Author Count
2
Added to Database
2026-01-25