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Pub Econ Lecture 02 Theory Tools

Pub Econ Lecture 02 Theory Tools

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Published by Katherine Sauer

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Categories:Types, School Work
Published by: Katherine Sauer on Jan 04, 2012
Copyright:Attribution Non-commercial

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01/04/2012

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Public FinanceDr. Katie Sauer 
Constrained Utility Maximization:TANF Example
 
After the cash welfare system was overhauled in 1996,the Temporary Assistance to Needy Families (TANF) program was created.-monthly chec-targeted to single-female-headed householdswith children-administered at the state levelYou get a job working for the state and are tasked withanalyzing the TANF program .
 
The governor believes a major problem with TANF is that because it provides income to very low income singlemothers, it encourages them to stay at home rather than goto work.-wants to cut the cash benefits to encourage work The head of the HHS department thinks that single motherswho are home with their children are incapable of finding jobs that pay a wage high enough to encourage them towork.-does not want to cut cash benefits

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