Determine the poverty rate by valuing in-kind transfers

Assignment Help Econometrics

Reference no: EM13233681

The poverty rate would be substantially lower if the market value of in-kind transfers were added family income. The largest in-kind transfer is Medicaid, the government health program for the poor. Let's say the program costs $7,000 per recipient family.

a. If the government gave each recipient family a $7,000 check instead of enrolling them in the Medicaid program, do you think that most of these families would spend that money to purchase health insurance? Why? (Recall that the poverty level for a family of four is about $20,000.)

b. How does your answer to part (a) affect you view about whether we should determine the poverty rate by valuing in-kind transfers at the price the government pays for them?

c. How does your answer to part (a) affect your view about whether we should provide assistance to the poor in the form of cash transfers or in-kind transfers?

Reference no: EM13233681

Questions Cloud

What are examples of external and internal change agents : What are examples of external and internal change agents? What role do change agents play in the execution of a road map for a strategic plan?

Identify and describe the three zones associated with buffer : Many companies who once used only JIT are now trying to integrate MRP into their MPC designs. Explain why they are doing this in detail.

How does a price ceiling undermine the rationing function : How does a price ceiling undermine the rationing function of market-determined prices How could rationing coupons insure that consumers with the highest values get the limited amount of a good supplied when government price ceilings create shortag..

Calculate solution of barbituric acid : Barbituric acid (ka = 1.1x10^-4) is used in the manufacture of some sedatives. For a 0.6733 M solution of barbituric acid, calculate

Determine the poverty rate by valuing in-kind transfers : The poverty rate would be substantially lower if the market value of in-kind transfers were added family income. The largest in-kind transfer is Medicaid, the government health program for the poor. Let's say the program costs $7,000 per recipient..

Considerations and network device security : Cnonsiderations and Network Device Security

How the input from other areas into pac : Explain how the input from other areas into PAC and the feedback PAC provides results in changes to PAC.

Compare and contrast jit and mrp : Compare and contrast JIT and MRP. Explain your answer in detail.

Organisations vision or mission statement : Strategic analysis to review an organisation's current marketing performance from organisational documents.

User Account

All Pages