ENGLANDER, Valerie

The impact of administrative stringency on applications for the old age assistance program in New Jersey - New York : Marcel Dekker, 1987

The purpose of this paper is to examine the impact of stricter eligibility enforcement on the flow of applications of the Old Age Assistance (OAA) Program in New Jersey. Most of the previous research in the welfare area has focused entirely on explaining measures of the stock demand for public assistance. Higher claim denial rates may affect the stock demand by deterring those potential recipients with less legitimate claims. However, there is also a strictly mechanical relationship such that a claim period t or in state i reduces, pari passu, the stock demand in period t or in state i below the level that would have prevailed in the absence of the denial. Thus, if the objective is to isolate a deterence effect, it seems more appropriate to examine the impact of previous recent denial rates on the flow of new applications for public assistance. A time series of monthly applications for OAA in New Jersey are related to lagged values of the denial rate of such applications, cyclical activity, seasonal factors and trend. The results suggest that stricter enforcement of eligibility rules does deter future claims.