Modeling SSI financial eligibility and simulating the effect of policy options

This article simulates eligibility for Supplemental Security Income (SSI) among the elderly, analyzes factors affecting participation, and looks at the potential effects of various options to modify financial eligibility standards for the federal SSI program. We find that in the estimated noninstitutional elderly population of 30.2 million in the United States in 1991, approximately 2 million individuals aged 65 or older were eligible for SSI (a 6.6 percent rate of eligibility). Our overall estimate of the rate of participation among eligible elderly is approximately 63 percent, suggesting that more than a third of those who are eligible do not participate in the program. The results of our analysis of factors affecting participation among the eligible elderly show that expected SSI benefits and a number of demographic and socioeconomic variables are associated with the probability of participation. We also simulate the effects of various policy options on the poverty rate, poverty gap, annual program cost, the number of participants, and the average estimated benefits among participants. The simulations consider the potential effects of five policy alternatives: Increase the general income exclusion (GIE) from $20 to $80. Increase the earned income exclusion (EIE) from $65 to $260. Increase the federal benefit rate (FBR) by $50 for individuals and $75 for couples and eliminate the GIE. Increase the asset threshold to $3,000 for individuals and $4,500 for couples. Increase the asset threshold to $6,000 for individuals and $9,000 for couples. Using 1991 microdata from the Survey of Income and Program Participation (SIPP) matched to Social Security Administration administrative records and making adjustments reflecting aggregate program statistics, we present the results of our simulations for December 1999. The results show substantial variation in the simulated effects of the five policy alternatives along the various outcome dimensions considered. The simulated effects on the poverty gap of the elderly population range from a 7.9 percent reduction ("Increase the GIE from $20 to $80") to a 0.1 percent reduction ("Increase the EIE from $65 to $260"). All simulated interventions are expected to increase the rate of SSI participation among the elderly from a high of 20.3 percent ("Increase the GIE from $20 to $80") to a low of 0.5 percent ("Increase the EIE from $65 to $260"). We also find that the interventions that have greater estimated effects in terms of increased participation and reduced poverty tend to cost more. At the high end, we estimate that increasing the GIE from $20 to $80 could raise annual federal SSI cash benefit outlays by about 46 percent, compared with only 0.9 percent for increasing the EIE from $65 to $260. Similar to the EIE intervention, raising the resource thresholds by 50 percent would reduce the overall poverty gap of the elderly by only 0.2 percent, would increase SSI participation only modestly (by 1.3 percent), but would entail slightly higher program costs (by 1.4 percent). Increasing the asset threshold by 200 percent would have higher estimated effects on all three outcomes, but it would still be associated with relatively low increases in both costs and benefits. Finally, the simulated effects on the three key outcomes of increasing the FBR by $50 for individuals and $75 for couples, combined with eliminating the GIE, are relatively large but are clearly less substantial than increasing the GIE from $20 to $80. This work relies on data from the SIPP matched to administrative data on federal SSI benefits that provide a more accurate picture of SSI participation than has been feasible for previous studies. We simulate eligibility for federal SSI benefits by applying the program rules to detailed information on the characteristics of individuals and couples based on the rich array of demographic and socioeconomic data in the SIPP, particularly the comprehensive information SIPP provides on assets and monthly income. A probit model is estimated to analyze factors affecting participation among the eligible elderly. Finally, we conduct the policy simulations using altered program rules represented by the policy alternatives and predicted participation probabilities to estimate outcomes under simulated program rules. We compare those simulated outcomes to observed outcomes under current program rules. The results of our simulations are conditional on the characteristics of participants and eligibles in 1991, but they also reflect aggregate adjustments capturing substantial changes in overall participation and program benefit levels between 1991 and 1999.     

Ethnic Microaggressions and the Depressive and Somatic Symptoms of Latino and Asian American Adolescents

Ethnic microaggressions are a form of everyday, interpersonal discrimination that are ambiguous and difficult to recognize as discrimination. This study examined the frequency and impact of microaggressions among Latino (n = 247) and Asian American (n = 113) adolescents (M (age) = 17.18, SD = .75; 57 % girls). Latino adolescents reported more frequent microaggressions that dismiss their realities of discrimination and microaggressions characterized by treatment as a second class citizen than Asian Americans, but similar levels of microaggressions that highlight differences or foreignness. There were no ethnic differences in the extent to which adolescents were bothered by microaggressions. Moreover, even supposedly innocuous forms of discrimination are associated with elevated levels of anxiety, anger, and stress, which may increase feelings of depression and sickness. Microaggressions should be recognized as subtle discrimination that send messages about group status and devaluation, and similar to overt discrimination, can evoke powerful emotional reactions and may affect mental health.     

The changing political economy of Taiwan‐Southeast Asia relations

This paper examines the possibility that the United States could ‘capture’ the Asia‐Pacific Economic Cooperation (APEC) forum and use it to impose America's economic agenda on the region. It discusses Washington's ability to shape the choices of APEC's East Asian members at APEC negotiations to reflect US interests through employing its military, economic, cultural, and ideological resources as instruments of leverage and influence. While interdependence constrains Washington's use of military and/or economic leverage to influence the choices of APEC's East Asian members, the complex bargaining and consensual decision‐making features of APEC further prevent Washington from imposing its agenda on APEC. On the other hand, Washington's capture of APEC could be facilitated if East Asian policy‐making elites were socialized through the APEC process to accept American norms. This would tend to lead to preference convergence since the values of both the US and East Asia would coincide. The analysis suggests, however, that American norms are unlikely to prevail within APEC in the near to medium term primarily because APEC's East Asian members consider East Asian norms to be superior. American culture and especially ideology are not sufficiently attractive to East Asian elites and are thus unable to be used as instruments of influence. For these reasons, the paper concludes that the United States will find it difficult to impose its economic agenda on the region through APEC.     

Do Survey Spot-Check and Threat Improve Data Quality? Evidence from a Field Experiment

In this study, we examine the effect of interview observation on data quality of a large-scale individual survey in Vietnam. External spot-check teams were sent to randomly selected enumeration areas to attend and observe survey training courses and field interviews of interviewers. We find that interviewers have a lower number of item non-responses in collected data when being observed by the spot-check teams. The effect of a spot-check of field interviews appears to be higher than the effect of a spot-check of training courses. However, we do not find a significant effect of a spot-check threat: informing interviewers of a possible spot-check without actually visiting does not reduce item non-responses.     

Local Financial Development and Household Welfare in Vietnam: Evidence from a Panel Survey

We examine the impact of local financial development on household welfare in Vietnam. We employ household-level panel data for the periods 2007, 2008, 2010 and 2013 covering three provinces and measure local financial development at the district, sub-district and village levels. To account for potential endogeneity that could emanate from the fact that local economic development could spur local financial development, we employ a recently suggested method of identification through heteroscedasticity. Our results show that local financial development has a significantly positive effect on household annual income, consumption and consumption smoothing.     

When development breeds contempt: case examples of community-driven health systems initiatives

This article discusses case examples of community-led initiatives triggered by the introduction of an external development programme in Senegal and Mali. These are community initiatives that learn from projects initiated and funded by an external donor organisation, and transform interventions to better meet their own needs. The circumstances leading to the demand for, and successful establishment of, health infrastructure are examined to understand the triggers. These breakthroughs demonstrate unintended benefits of development, and the need to leverage donor-led initiatives. Therefore, community involvement, participation, and empowerment are key in establishing local ownership in development projects.