THE DEMAND FOR MEDICAID AND AFDC.
Item
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Title
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THE DEMAND FOR MEDICAID AND AFDC.
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Identifier
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AAI8515608
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identifier
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8515608
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Creator
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BERENDT, EMIL BOHDAN.
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Contributor
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Michael Grossman
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Date
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1985
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Language
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English
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Publisher
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City University of New York.
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Subject
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Economics, General
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Abstract
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This dissertation estimates joint demand functions for the Medicaid and Aid to Families With Dependent Children (AFDC) programs. In recent years there has been much effort expended in analyzing the demand for public redistribution. Most studies, however, have ignored the interrelationships between the various redistributive programs. The purpose of this dissertation is to develop and test a model in which the cost to voters of each of the two programs affects the demand for both programs. Using the political process, the voter simultaneously makes known his demand for Medicaid and AFDC recipients and for the AFDC benefit level.;This study concludes that the demand for Medicaid recipients depends on the costs of the AFDC program and that the demands for AFDC benefits and recipients are functions of some of the costs of the Medicaid program. The results of the Medicaid regressions show that the AFDC benefit level and average state matching share, which are components of the shadow price of the AFDC recipient rate, generally have significantly positive effects. Two of the variables making up the shadow price of AFDC benefits, the AFDC recipient rate and the marginal state matching share, usually have negative signs.;The Medicaid benefits and state matching share have negative effects on the AFDC recipient rate demanded. This indicates the shadow price of the Medicaid recipient rate has an effect on the demand for the AFDC recipient rate. In the demand for AFDC benefits, the Medicaid and AFDC shadow price variables have signs that are sensitive to the econometric treatment of the regressions.;There has been much criticism of the present federal matching rate formulas used in the two programs. The results of this dissertation point out that in any discussion of reform, the cross-program effects of a change in matching rates should be taken into account.
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Type
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dissertation
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Source
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PQT Legacy CUNY.xlsx
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degree
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Ph.D.
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Program
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Economics
