Effects of Geographic Cost of Living Adjustments in Welfare Benefits

Robert A. Hoppe

No 333657, Rural Development Research Reports from United States Department of Agriculture, Economic Research Service

Abstract: Adjusting welfare benefits for geographic variations in the cost of living not only would help people in high-cost areas but also provide recipients in all areas with similar real benefits. However, there are technical problems and expenses involved in developing a cost of living index with adequate geographic detail. Simulations examined in this study indicate that providing adjusted rather than uniform benefits could slightly reduce total benefits paid. Cost of living adjustments would reduce benefits in southern and nonmetropolitan areas and increase benefits in metropolitan areas.

Keywords: Community/Rural/Urban Development; Food Security and Poverty; Labor and Human Capital; Public Economics; Research Methods/Statistical Methods (search for similar items in EconPapers)
Pages: 22
Date: 1979-03
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ersrdr:333657

DOI: 10.22004/ag.econ.333657

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