The effects of welfare vehicle asset rules on vehicle assets |
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Authors: | Mark F Owens |
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Institution: | Department of Economics and Finance , Middle Tennessee State University , Box 27, Murfreesboro 37132, United States |
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Abstract: | Before 1996, households were typically ineligible for welfare if they had assets worth more than $1000, where $1500 from each vehicle's value was excluded from this determination. However, the 1996 welfare reform act began allowing states to increase their asset limits and vehicle exclusions. This may prompt low-income households to reallocate resources to or from vehicles. We examine the effects of state vehicle asset rules on vehicle assets. Results show that liberalizing asset rules increases vehicle assets and that this increase is driven largely by eligible individuals increasing vehicle assets, with no evidence indicating that ineligible individuals reduce vehicle assets to become eligible. |
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Keywords: | I38 – Government policy provision and effects of welfare programs vehicle assets welfare eligibility asset rules |
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