This paper develops a framework to bound the welfare impacts of reforms to notches using two sufficient statistics: (1) the number of households bunching at the old notch who move toward the new notch, and (2) the number of households who “jump” down to the new notch. The bounds hold in a wide class of models, highlighting a new way to use reduced-form bunching evidence for welfare analysis without strong assumptions on the economic environment. These...
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2022/07/05
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Policy Research Working Paper
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WPS10117
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1
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2022/07/05
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Disclosed
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Welfare Analysis of Changing Notches: Evidence from Bolsa Família
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Citation
Bergstrom,Katy Ann; Dodds,William; Robles Rios,Juan Carlos.
Welfare Analysis of Changing Notches: Evidence from Bolsa Família (English). Policy Research working paper ; no. WPS 10117 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/099711507052235480