ERIC Number: ED105023
Record Type: RIE
Publication Date: 1973-Jul
Reference Count: 0
A General Economic Framework for Welfare Reform Analysis.
DeTray, Dennis N.
An analysis of the potential effects of different types of welfare reforms can proceed in one of two ways. One can explore the effects of a given plan in detail, or one can cull from the set of feasible alternative plans the major changes that these plans will bring about and then analyze the effect of these changes in a general framework. At their most fundamental levels, the evaluations of all alternative income maintenance schemes require accurate measures of family responses to changes in the market wage that household members receive if they choose to work, and the total income at the family's disposal. In the household production model the family is viewed as a firm engaged in the production of basic items of consumption usually called "household commodities". Families are assumed to produce household commodities by combining their own time with purchased goods and services. They obtain these goods and services in exchange for the time they allocate to market work and possibly in exchange for income from other (non-wage) source as well. The workings of this model are illustrated through the derivation of an equation that relates changes in husband's time in the home to changes in "factor prices"--husband's and wife's wages and prices of purchased market goods--and family full wealth. (Author/JM)
Publication Type: Reports - Research
Education Level: N/A
Sponsor: Office of Economic Opportunity, Washington, DC.
Authoring Institution: Rand Corp., Santa Monica, CA.