Download Econ 242 reading list_2nd half Spr09.pdf - Economics

Social Insurance:
Economics 242
Public Finance II
Spring, 2008-09
Reading List Part II (Fitzpatrick)
a. Justification for Government Involvement
**Rothschild, Michael and Joseph Stiglitz, 1976. “Equilibrium in Competitive Insurance Markets: An
Essay on the Economics of Imperfect Information.” Quarterly Journal of Economics 90(4): 629-649.
Finkelstein, Amy, 2002. “When Can Partial Public Insurance Produce Pareto Improvements?” NBER
Working Paper 9035.
Wilson, Charles, 1977. “A Model of Insurance Markets with Incomplete Information.” Journal of
Economic Theory 16(2): 167-207.
Shavell, Steven, 1979. “On Moral Hazard and Insurance.” Quarterly Journal of Economics 93: 541-562.
Wilson, Charles, 1980. “The Nature of Equilibrium in Markets with Adverse Selection.” Bell Journal of
Economics (Spring): 108-130.
b. Unemployment Insurance and Disability Insurance
M. Baily “Some Aspects of Optimal Unemployment Insurance,” Journal of Public Economics 10
(1978), 379-402.
**Meyer, Bruce, 1990. “Unemployment Insurance and Unemployment Spells.” Econometrica
58: 757-782.
**Gruber, Jonathan, 1997. “The Consumption Smoothing Benefits of Unemployment
Insurance.” American Economic Review 87(1): 192-205.
**Chetty, Raj, 2006. “A General Formula for the Optimal Level of Social Insurance.” Journal of
Public Economics 90: 1879-1901.
**R. Chetty “Optimal Unemployment Insurance when Income Effects are Large.” 2004, NBER
Working Paper 10500.
R. Chetty “Moral Hazard vs. Liquidity and Optimal Unemployment Insurance.” 2005, UC
Berkeley
Katz, Lawrence and Bruce Meyer, 1990. “The Impact of the Potential Duration of
Unemployment Benefits on the Duration of Unemployment.” Journal of Public Economics
41(1): 45-72.
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Card, David, Raj Chetty and Andrea Weber, 2007. “Cash-on-Hand and Competing Models of
Intertemporal Behavior: New Evidence from the Labor Market.” Quarterly Journal of Economics 122(4):
1511-1560.
Cullen, Julie and Jonathan Gruber, 2000. “Does Unemployment Insurance Crowd out Spousal Labor
Supply?” Journal of Labor Economics 18: 546-572.
M. Feldstein "Seven Principles of Social Insurance," Challenge, November/December 1976.
c. Workers' Compensation
**A. Krueger "Incentive Effects of Workers' Compensation Insurance" Journal of Public
Economics, 41, 73-99, 1990.
**L. Summers, "Some Simple Economics of Mandated Benefits", American Economic Review
79 (May 1989), 177-183.
**J. Gruber and A. Krueger, "The Incidence of Mandated Employer-Provided Insurance:
Lessons from the Workers' Compensation Insurance," in D. Bradford Tax Policy and the
Economy 5 (Cambridge, MA: MIT Press, 1991), 111-144.
**D. Card and B. McCall. Is Workers Compensation Covering Uninsured Medical Costs?
Evidence from the Monday Effect" Industrial and Labor Relations Review, 1996, 690-706.
P. Fishback and S. Kantor, “Did Workers Pay for the Passage of Workers's Compensation
Laws?” Quarterly Journal of Economics 110 (August 1995), 713-742.
A. Krueger, “Incentive Effects of Workers Compensation Insurance,” Journal of Public
Economics 41 (February 1990), 73-100.
A. Krueger, “Workers' Compensation Insurance and the Duration of Workplace Injuries,” NBER
Working Paper #3253, February 1990.
K. Viscusi and M. Moore, “Workers' Compensation: Wage Effects, Benefit Inadequacies, and
the Value of Health Losses,” Review of Economics and Statistics, 66 (May 1987), 249-261.
d. Disability Insurance
**D. Autor and M. Duggan, "The Rise in Disability Rolls and the Decline in Unemployment,"
Quarterly Journal of Economics, 118, 2003, 157-206.
**D. Black, K. Daniel and S. Sanders, "The Impact of Economic Conditions on Participation in
Disability Programs: Evidence from the Coal Boom and Bust," American Economic Review, 92,
2002, 27-50.
**J. Gruber, "Disability Insurance Benefits and Labor Supply," Journal of Political Economy,
2000, 1162-1183.
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J. Bound, “The Health and Earnings of Rejected Disability Insurance Applicants,” American
Economic Review 79 (1989), 482-503.
J. Bound, “The Health and Earnings of Rejected Disability Insurance Applicants: Reply,”
American Economic Review 81 (December 1991), 1427-1434.
J. Bound and T. Waidmann, “Disability Transfers, Self-Reported Health, and the Labor Force
Attachment of Older Men: Evidence from the Historical Record,” Quarterly Journal of
Economics, (1992), 1393-1419.
P. Diamond and E. Sheshinski, “Economic Aspects of Optimal Disability Benefits,” Journal of
Public Economics 57 (1995), 1-24.
J. Gruber and J. Kubik, “Disability Insurance Rejection Rates and the Labor Supply of Older
Workers,” NBER Working Paper #4941, November 1994.
D. Parsons, “The Decline of Male Labor Force Participation,” Journal of Political Economy 88
(February 1980), 117-134.
D. Parsons, “The Health and Earnings of Rejected Disability Insurance Applicants: Comment,”
American Economic Review 81 (December 1991), 1419-1426.
D. Parsons, “Self-Screening in Targeted Public Transfer Programs,” Journal of Political
Economy, 99 (1991), 859-876.
McInerney, Melissa. "Privatizing Public Services and Strategic Behavior: The Impact of
Incentives to Reduce Workers' Compensation Claim Duration," mimeo, College of William and
Mary, 2008
e. Social Security
**M. Feldstein and J. Liebman, "Social Security," Handbook of Public Economics, Vol 4, 2002.
**Krueger, Alan and Jorn-Steffen Pischke, 1992. "The Effect of Social Security on Labor
Supply: A Cohort Analysis of the Notch Generation." Journal of Labor Economics 10(4): 412-
437.
**Friedberg, Leora, 2000. “The Labor Supply Effects of the Social Security Earnings Test.”
Review of Economics and Statistics 82(1): 48-63.
**Gruber and Wise. "Social Security Programs and Retirement Around the World," NBER
Working Paper #6134, 1997.
Feldstein, Martin, 1985. “The Optimal Level of Social Security Benefits.” The Quarterly Journal
of Economics 100(2): 303-320.
Hurd, Michael D., 1990. “Research on the Elderly: Economic Status, Retirement, and
Consumption and Savings.” Journal of Economic Literature 28: 565-637.
Samuelson, Paul, 1958. “An Exact Consumption-Loan Model of Interest With or Without the
Social Contrivance of Money.” Journal of Political Economy 66(6): 467-482.
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Coile, Courtney and Jonathan Gruber, 2000a. “Social Security and Retirement,” forthcoming
Review of Economics and Statistics. (Also available as NBER Working Paper #7830 August 1
2000.)
Coile, Courtney and Jonathan Gruber, 2000b. “Social Security Inventives for Retirement.” NBER
Working Paper 7651.
Gruber, Jonathan and Peter Orszag, 2000. "Does the Social Security Earnings Test Affect Labor
Supply and Benefits Receipt?" NBER Working Paper 7923.
Rust, John and Christopher Phelan, 1996. “How Social Security and Medicare Affect Retirement
Behavior in a World of Incomplete Markets.” Econometrica 65(4): 781-831.
Gustman, Alan L. and Thomas L. Steinmeier, 2005. “The Social Security Early Entitlement Age
in a Structural Model of Retirement and Wealth.” Journal of Public Economics 89(2-3): 441-
463.
E. Lazear. "Retirement from the Labor Force," in Handbook of Labor Economics, Volume 1.
Bernheim, B. Douglas, 1987. “The Economic Effects of Social Security: Toward a
Reconciliation of Theory and Measurement.” Journal of Public Economics 33: 273-304.
Feldstein, Martin, 1974. “Social Security, Induced Retirement, and Aggregate Capital
Accumulation.” Journal of Political Economy 82: 905-926.
Scholz, John Karl, Ananth Seshadri and Surachai Khitatrakun. 2006. “Are Americans Savings
`Optimally’ for Retirement?” Journal of Political Economy 114(4): 607-643.
Diamond, Peter A. and Peter R. Orszag, 2005. “Saving Social Security.” Journal of Economic
Perspectives 19(2): 11-32.
Feldstein, Martin and Jeffrey Liebman, 2000. “The Distributional Effects of an Investment-
Based Social Security System.” NBER Working Paper No. 7492.
Feldstein, Martin, 2005. “Structural Reform of Social Security.” Journal of Economic
Perspectives 19(2): 33-55.
Goda, Gopi Shah, John Shoven and Sita Natarej Slavov, 2007. “Removing the Disincentives in
Social Security for Long Careers.” NBER Working Paper 13110.
Gustman, Alan L. and Thomas L. Steinmeier, 2001. “How Effective is Redistribution Under the
Social Security Benefit Formula?” Journal of Public Economics 82(1): 1-28.
Kotlikoff, Laurence, Kent A. Smetters, and Jan Walliser, 1998. “Social Security: Privatization
and Progressivity.” American Economic Review 88(2): 137-141.
Pozen, Robert, Sylvester Schieber, and John B. Shoven, 2004. “Improving Social Security’s
Progressivity and Solvency with Hybrid Indexing.” American Economic Review 94(2): 187-191.
Hamermesh, Daniel S, 1984. "Consumption during Retirement: The Missing Link in the Life
Cycle," The Review of Economics and Statistics, MIT Press, vol. 66(1), pages 1-7, February.
B. Douglas Bernheim & Jonathan Skinner & Steven Weinberg, 2001. "What Accounts for the
Variation in Retirement Wealth among U.S. Households?," American Economic Review, vol.
91(4), pages 832-857, September.
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f. Medicare
**Blume-Kohout, Margart, 2008. “The Impact of Medicare Part D on Pharmaceutical R&D”
NBER Working Paper 13857.
**Card, David, Carlos Dobkin and Nicole Maestas, 2007. “Does Medicare Save Lives?” NBER
Working Paper No. 13668.
Duggan, Mark, and Fiona Scott-Morton, 2008. “The Effect of Medicare Part D on
Pharmaceutical Prices and Utilization” University of Maryland Mimeo:
ttp://www.econ.umd.edu/~duggan/partd-jan08.pdf
Finkelstein, Amy and Robin McNight, 2005. “What Did Medicare Do (And Was it Worth It)?”
NBER Working Paper No. 11609.
Finkelstein, Amy, 2007. “The Aggregate Effects of Health Insurance: Evidence from the
Introduction of Medicare.” Quarterly Journal of Economics 122(1): 1-37.
II. Other Government Programs:
a. Medicaid and SCHIP
D.Cutler and J. Gruber, “Does Public Insurance Crowd Out Private Insurance?” QJE, 111 (May
1996), 391-430.
J. Gruber, “Health Insurance for Poor Women and Children Over the Past Decade,” in J. Poterba,
ed., Tax Policy and the Economy, Volume 11 (Cambridge: MIT Press, 1997).
L. Baker and A. Royalty, “Medicaid Policy, Physician Behavior, and Health Care for the Low-
Income Population,” JHR 35(3), Summer 2000, pages 480-502.
J. Currie and J. Gruber. “Health Insurance Eligibility, Utilization of Medical Care, and Child
Health” QJE, 1996.
J. Currie and J. Gruber, “Saving Babies: The Efficacy and Cost of Recent Changes in the
Medicaid Eligibility of Pregnant Women,” Journal of Political Economy 104 (December 1996),
1263-1296.
b. Education
Education Production: Do School Resources Matter?
Angrist, Joshua and Victor Lavy, 1999. “Using Maimonides' Rule to Estimate The Effect of
Class Size on Scholastic Achievement.” Quarterly Journal of Economics 114(2): 533-575.
Bound, John and Susanna Loeb, 1996. “The Effect of Measured School Inputs on Academic
Achievement: Evidence from the 1920s, 1930s and 1940s Birth Cohorts.” The Review of
Economics and Statistics 78(4): 653-664.
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Fryer, Roland G. Jr., and Steven D. Levitt, 2004. “Understanding the Black-White Test Score
Gap in the First Two Years of School.” The Review of Economics and Statistics 86(2): 447-464.
Hanushek, Eric A., 1986. “The Economics of Schooling: Production and Efficiency in Public
Schools.” Journal of Economic Literature 24(3): 1141-1177.
Hanushek, Eric A., 2003. “The Failure of Input-based Schooling Policies.” The Economic
Journal 113(485): F64-F98.
Hanushek, Eric A. and Steven G. Rivkin, 1997. “Understanding the Twentieth-Century Growth
in U.S. School Spending.” The Journal of Human Resources 32(1): 35-68.
Hanushek, Eric A. and Steven G. Rivkin, 2006. “School Quality and the Black-White
Achievement Gap.” NBER Working Paper No. 12651.
Kreuger, Alan, 1999. “Experimental Estimates of Education Production.” The Quarterly Journal
of Economics 114(2): 497-532.
Loeb, Susanna and Marianne Page, 2000. “Examining the Link Between Wages and Quality in
the Teacher Workforce: The Role of Alternative Labor Market Opportunities and Non-Pecuniary
Variation.” The Review of Economics and Statistics 82(3): 393-408.
Rivkin, Steven G., Eric A. Hanushek and John F. Kain, 2005. “Teachers, Schools, and Academic
Achievement.” Econometrica 73(2): 417-458.
Todd, Petra E. and Kenneth I. Wolpin, 2003. “On the Specification and Estimation of the
Production Function for Cognitive Achievement.” The Economic Journal 113(485): F3-F33.
Education Policy and Achievement
Cullen, Julie Berry, 2003. “The Impact of Fiscal Incentives on Student Disability Rates.” Journal
of Public Economics 87(7-8): 1557-1559.
Currie, Janet and Duncan Thomas, 1995. “Does Head Start Make a Difference?” American
Economic Review 85(3): 341-364.
Figlio, David and Marianne Page, 2003. “Can School Choice and School Accountability
Successfully Coexist?” In The Economics of School Choice, edited by Caroline Hoxby. Chicago:
The University of Chicago Press, 49-66.
Fitzpatrick, Maria, 2007. “Starting School at Four: The Effect of Universal Pre-Kindergarten on
Children’s Academic Achievement.” Mimeo, University of Virginia:
http://people.virginia.edu/~mdf4y/Universal%20Pre-K%20NAEP.pdf.
Hanushek, Eric A. and Margaret E. Raymond, 2004. “Does School Accountability Lead to
Improved Student Performance?” NBER Working Paper No. 10591.
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Hanushek, Eric, Steven Rivkin and John Kain, 2002. “Inferring Program Effects for Special
Populations: Does Special Education Raise Achievement for Students with Disabilities?” The
Review of Economics and Statistics 84(4): 584-599.
Kwak, Sally, 2007. “The Impact of Intergovernmental Incentives on Disability Rates and Special
Education Spending.” Mimeo available at: http://www2.hawaii.edu/~kwaks/ca97_mar07.pdf
Ludwig, Jens and Douglas Miller, 2007. “Does Head Start Improve Childrens’ Outcomes?:
Evidence from a Regression Discontinuity Design.” Quarterly Journal of Economics 122(1).
Amalia R. Miller and Lei. Zhang, “Intergenerational Effects of Welfare Reform” working paper,
July 2008.
Amalia R. Miller and Lei. Zhang, “The Impact of Welfare Reform on Children’s Academic
Performance,” Working Paper, 2008.
Higher Education
Bound, John, Michael F. Lovenheim and Sarah E. Turner, 2007. “Understanding the Decrease in
College Completion Rates and the Increased Time to the Baccalaureate Degree.” PSC Research
Report No. 07-626.
Bound, John and Sarah E. Turner, 2007. “Cohort Crowding: How Resources Affect Collegiate
Attainment.” Journal of Public Economics 91(5-6): 877-899.
Courant, Paul, Michael McPherson, and Alexandra Resch, 2006. “The Public Role in Higher
Education.” National Tax Journal 59(2): 291-318.
Delong, J. Bradford, Claudia Goldin, and Lawrence Katz, 2003. “Sustaining U.S. Economic
Growth.”In H. Aaron, J. Lindsay, and P. Nivola, eds., Agenda for the Nation. Washington, D.C.:
Brookings Institution Press.
Dynarski, Susan, 2002. “The Behavioral and Distributional Implications of Aid for College.”
American Economic Review 92(2): 279-285.
Dynarski, Susan, 2003. “Does Aid Matter? Measuring the Effect of Student Aid on College
Attendance and Completion.” American Economic Review 93(1): 279-288.
Goldin, Claudia, Lawrence Katz, and Ilyana Kuziemko, 2006. “The Homecoming of American
College Women: The Reversal of the College Gender Gap.” Journal of Economic Perspectives
20(4): 133-156.
Kane, Thomas, 1994. “College Attendance by Blacks Since 1970: The Role of College Cost,
Family Background and the Returns to Education.” Journal of Political Economy 102(5): 878-
911.
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Kane, Thomas J., Peter R. Orszag, and Emily Apostolov, 2005. “Higher Education
Appropriations and Public Universities: The Role of Medicaid and the Business Cycle.”
Brookings-Wharton Papers on Urban Affairs: 99-127.
Kane, Thomas and Cecilia Rouse, 1999. “The Community College: Training Students at the
Margin Between College and Work.” Journal of Economic Perspectives 13(1): 63-84.
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