Specialized theoretical and empirical research should in principle be embedded in a unified framework that identifies the relevant interactions among different phenomena, enables an appropriate matching of policy instruments to objectives, and grounds normative analysis in individuals' utilities...

This paper studies the optimal income redistribution and optimal monitoring when disability benefits are intended for disabled people but when some able agents with high distaste for work mimic them (type II errors). Labor supply responses are at the extensive margin and endogenous take-up costs...