A General Economic Framework for Welfare Reform Analysis.

by Dennis N. De Tray

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Outlines a relatively new economic framework in which the effects of proposed welfare reforms could be analyzed. The argument is made that although the specifics of alternative welfare reform proposals differ considerably, evaluation of almost all proposals requires a common set of basic information about family behavior. The household production model is an analytical framework within which one can begin the task of estimating the behavioral parameters necessary for the evaluation of proposed welfare reforms. The basic structure of the model is presented in a theoretical analysis of factors that affect the amount of time husbands allocate to market work. A second example based on the determinants of desired family size is also given. The report concludes with a set of suggestions for methodologies and research that would improve the future analysis of welfare reform. 68 pp. Bibliog.

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