Breunig, Robert; Dasgupta, Indraneel - Research School of Economics, College of Business and … - 2003
We examine the case for maintaining welfare and income redistribution programs even when their adverse general … equilibrium effects reduce total earnings of poor households. Using a Cournot model of intra-household decision-making, we show … that even if welfare cutbacks generate large increases in household income, these may still reduce the well-being of …