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- W3125943757 abstract "This paper illustrates how one can use causal effects of a policy change to measure its welfare impact without decomposing them into income and substitution effects. Often, a single causal effect suffices: the impact on government revenue. Because these responses vary with the policy in question, I term them policy elasticities, to distinguish them from Hicksian and Marshallian elasticities. The model also formally justifies a simple benefit-cost ratio for non-budget neutral policies. Using existing causal estimates, I apply the framework to five policy changes: top income tax rate, EITC generosity, food stamps, job training, and housing vouchers." @default.
- W3125943757 created "2021-02-01" @default.
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- W3125943757 date "2013-06-01" @default.
- W3125943757 modified "2023-09-26" @default.
- W3125943757 title "The Policy Elasticity" @default.
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