The effects of welfare vehicle asset rules on vehicle assets

Mark F. Owens, Charles L. Baum

Research output: Contribution to journalArticle

5 Scopus citations

Abstract

Before 1996, households were typically ineligible for welfare if they had assets worth more than $1000, where $1500 from each vehicle's value was excluded from this determination. However, the 1996 welfare reform act began allowing states to increase their asset limits and vehicle exclusions. This may prompt low-income households to reallocate resources to or from vehicles. We examine the effects of state vehicle asset rules on vehicle assets. Results show that liberalizing asset rules increases vehicle assets and that this increase is driven largely by eligible individuals increasing vehicle assets, with no evidence indicating that ineligible individuals reduce vehicle assets to become eligible.

Original languageEnglish (US)
Pages (from-to)1603-1619
Number of pages17
JournalApplied Economics
Volume44
Issue number13
DOIs
StatePublished - May 1 2012

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

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