Transfer Program Complexity and the Take-Up of Social Benefits

A-Tier
Journal: American Economic Journal: Economic Policy
Year: 2011
Volume: 3
Issue: 1
Pages: 54-90

Authors (2)

Henrik Jacobsen Kleven (not in RePEc) Wojciech Kopczuk (Columbia University)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

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

Abstract

We model complexity in social programs as a by-product of the screening process. While a more rigorous screening process may improve targeting efficiency, the associated complexity is costly to applicants and induces incomplete take-up. We integrate the study of take-up with the study of rejection (Type I) and award (Type II) errors, and characterize optimal programs when policy makers choose screening intensity (and complexity), an eligibility rule, and a benefit level. Consistent with many real-world programs, optimal programs feature high complexity, incomplete take-up, classification errors of both Type I and II and, in some cases, "excessive" benefits. (JEL D04, D82, H23, I18, I38)

Technical Details

RePEc Handle
repec:aea:aejpol:v:3:y:2011:i:1:p:54-90
Journal Field
General
Author Count
2
Added to Database
2026-01-25