Welfare Analysis of Changing Notches: Evidence from Bolsa Família (الإنجليزية)

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...
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إشترك في التنبيهات الالكترونية/ تنبيهات البريد الالكتروني

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