Links with Internet Citations
Targeting in Social Programs Home
Chapters 6 and 7
3. Public and private colleges increasingly admit high
school dropouts; see Karen W. Arenson, “Can’t
Complete High School? Go Right to College,” New York
Times, May 30, 2006, p. A1.
5. See Edward L. Glaeser and Jesse M. Shapiro,
Benefits of the Home Mortgage Interest Deduction,”
Discussion Paper 1979 (Cambridge, Mass: Harvard Institute of
Economic Research, October 2002) (post.economics.harvard.edu/hier/2002papers/HIER1979.pdf).
To be sure, the deductibility of mortgage interest is
presently incorporated into the price of housing and in that
sense is not a continuing subsidy. However, removing
deductibility would impose a windfall loss for home owners.
7. Daniel Patrick Moynihan, “Defining
Deviancy Down,” American Scholar (Winter 1993),
8. See the discussion of the probability weighting
functions in Daniel Kahneman and Amos Tversky, “Prospect
Theory: An Analysis of Decision under Risk,”
Econometrica 47, no 2 (1979): 280–294. It shows that
individuals tend to respond little to differences in low but
12. On hospital costs, see Christopher J. Zook and Francis
D. Moore, “High-Cost
Users of Medical Care,” New England Journal of
Medicine 302 (1980): 996–1002. The authors found that
hospital costs were concentrated on a few patients; on
average, these high-cost patients (13 percent) consumed as
many resources as the low-cost patients (87 percent). For a
recent account, see Malcolm Gladwell, “Million-Dollar
Murray,” New Yorker, February 13, 2006. In the
article he describes resource drains who fall into a number
of these categories simultaneously and impose extremely high
costs on the social services system, such as a substance
abuser whose costs totaled $65,000 in only three months,
2,500 hardcore homeless individuals who were sheltered at a
cost of $62 million a year, and 15 chronically homeless
inebriates who were treated in hospital emergency rooms 417
times over eighteen months, running up medical bills
averaging $100,000 during this period. On long-term welfare
recipients, see, for example, Mary Jo Bane and David R.
Ellwood, Welfare Realities: From Rhetoric to Reform
(Harvard University Press, 1994); for government data on
welfare dependency, see U.S. Department of Health and Human
Indicators of Welfare Dependence: Annual Report to Congress
2004, especially section II, indicators 7–9.
21. See, for example, Jacob S. Hacker, “After
Welfare,” New Republic, October 11, 2004, pp.
46–47 (reviewing Jason DeParle, American Dream: Ten Kids
and a Nation’s Drive to End Welfare [New York: Viking,
2004]). The same is true of most tax expenditures; see
Christopher Howard, The Hidden Welfare State: Tax
Expenditures and Social Policy in the United States
(Princeton University Press, 1999) for data comparing
transfer programs with various categories of tax
23. See Henry J. Aaron and William B. Schwartz with Melissa
Can We Say No? The Challenge of Rationing Health Care
See, for example, Michael Chernew and others, “Managed
Care and Medical Technology: Implications for Cost Growth,”
Health Affairs, vol. 16, issue 2 (1997), pp.
196-206. For discussions on specific drugs, see Alex
Drugs Offer Hope, But at Huge Expense,” New York
Times, July 12, 2005, p. A1, and Sarah Lyall, “Court
Backs Briton’s Right to a Costly Drug,” New York
Times, April 13, 2006, p. A3.
Health Care Crisis and What to Do about It,” New York
Review of Books, March 23, 2006, pp. 42–43 (reviewing
Henry J. Aaron and others, Can We Say No?, and citing
health economist Uwe Reinhardt).