ABSTRACT
This chapter reviews research findings regarding programs for child support assurance, children’s allowance, and national health insurance, focusing primarily on simulation analysis for the costs and economic effects of the proposals. The effect of CSAS on the labor supply and Aid to Families with Dependent Children (AFDC) recipiency is based on the static economic theory. In brief, labor supply theory predicts that CSAS will decrease the labor supply of non-AFDC custodial parents, while it will increase the labor supply of AFDC custodial parents and consequently decrease AFDC participation. The program would be funded out of general revenues and the monthly benefits would be considered non-taxable income for the income tax code but unearned income for the purpose of AFDC benefit counts. Prior research on the effects of health care reform covers a broad range of issues including the impact on macro economy, employment and wages, insurance markets, consumers, and so on.
