Working Paper: NBER ID: w1715
Authors: Charles C. Brown; Wallace E. Oates
Abstract: This paper explores the roles of different levels of government in assisting the poor. Using a model with utility interdependence, the paper presents some theoretical results on how levels of poor relief vary with the extent of mobility of the poor under both centralized and decentralized systems of support. After surveying the relevant empirical work and the experience under the English Poor Laws, the paper argues for a basic role for central government in this function.
Keywords: welfare; federalism; government assistance; poverty; mobility
JEL Codes: H53; I38
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Level of assistance (F35) | Elasticity of mobility (J62) |
| Elasticity of mobility (J62) | Level of assistance (F35) |
| Increased mobility of the poor (J62) | Reduced levels of assistance in decentralized systems (H77) |
| Decentralization (H77) | Variability in support levels (C29) |
| Preferences of the nonpoor (D11) | Political decisions regarding transfer payments (H59) |
| Number of poor individuals in a jurisdiction (I32) | Political decisions regarding transfer payments (H59) |