Since the implementation of Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) in 1996, the prevalence of welfare participation among single mothers has dropped dramatically, from 25% in 1996 to 9% today. At the same time, the fraction of single mothers who work increased from 74% in 1996 to 79% today. But these trends actually began as early as 19931994. The goal of this ...

The goal of this paper is to compute optimal monetary and fiscal policy rules in a real business cycle model augmented with sticky prices, a demand for money, taxation, and stochastic government consumption. We consider simple policy rules whereby the nominal interest rate is set as a function of output and inflation, and taxes are set as a function of total government liabilities. We require p...

Are Lone Mothers Responsive to Policy Changes? Evidence from a Workfare Reform in a Generous Welfare State There is a heated debate in many European countries about a move towards a welfare system that increases the incentives for lone mothers to move off welfare and into work. We analyze the consequences of a major Norwegian workfare reform of the generous welfare system for lone mothers. Our ...

ISSN 1746-6938 PAPER Introduction We present here a brief outline of findings from our research, which explores the relationship between welfare expenditure and levels of punishment. We begin by examining research on welfare spending and imprisonment rates across US states and replicate this work using data from 18 countries, including the United Kingdom. The results show that welfare provision...

We developed a game-theoretic approach concerning the option pricing validity and tractability of which is ascertained by deriving the Black-Scholes formula. We also applied this approach to the welfare implications of the bailout policy. It is found that such a policy always worsens the economic welfare. This is because of the moral hazardous behavior of the buyer owing to the limited liabilit...

Using a standard open economy DSGE model, it is shown that the timing of asset trade relative to policy decisions has a potentially important impact on the welfare evaluation of monetary policy at the individual country level. If asset trade in the initial period takes place before the announcement of policy, a national policymaker can choose a policy rule which reduces the work effort of house...

This paper explores the possibility that states respond asymmetrically to increases versus decreases in their neighboring states’ welfare benefit levels. We present a theoretical model suggesting that states respond more to decreases than to increases in their neighbors’ benefit levels. To test this proposition empirically, we use a panel of annual state-level data from 1983 to 1994 for each of...

Formal university-child welfare partnerships offer a unique opportunity to begin to fill the gaps in the child welfare knowledge base and link child welfare services to the realities of practice. With resources from a knowledge mobilization grant, a formal partnership was developed between the University of Toronto, clinicians, policy analysts, and researchers from child welfare agencies across...