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Allocation problems in child benefit programs using a microeconomic theory approach

Tomas Artemio Marinozzi

No 775, CEMA Working Papers: Serie Documentos de Trabajo. from Universidad del CEMA

Abstract: This paper intends to illustrate theoretical bases for positive factors as well as major problems associated with UCT and CCT programs. It is important to highlight that there is diverse empirical evidence regarding support schemes and their effects on schooling, health and nutrition. However, literature regarding the allocation of child benefit transfers between household members is rather limited. This paper provides a theoretical explanation of how conventional child benefit programs may have transmission problems, which may prove to be counterproductive in terms of social welfare. The allocation flaws are evident in the model and are very intuitive, however similar schemes have prevailed in practice. It is unclear to what extent these perceptions are borne out of a concern for children's (or individuals') wellbeing or are guided by political interests. For this reason, the last section of the paper offers a different perspective on certain programs, taking into consideration political incentives. The final aim is not necessarily to provide an optimal scheme but instead to draw attention to certain features of child benefit programs under a clear microeconomic scope.

Keywords: Child Benefit Programs; Family Economics; Conditional Cash Transfer Programs; Unconditional Cash Transfer Programs. (search for similar items in EconPapers)
JEL-codes: D11 E31 E62 I38 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2021-01
New Economics Papers: this item is included in nep-mac
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