How Do Benefit Adjustments for Government Transfer Programs Compare with Their Participants’ Inflation Experiences?

24 Pages Posted: 15 Nov 2011

See all articles by Leslie McGranahan

Leslie McGranahan

Federal Reserve Bank of Chicago

Anna L. Paulson

Federal Reserve Bank of Chicago

Date Written: November 1, 2011

Abstract

The authors measure the inflation experienced by demographic groups that likely received benefits from major government transfer programs during the period 1980–2010. They then compare the group-specific inflation measures with the transfer programs’ benefit adjustments, which are typically based on aggregate inflation. The extent to which the program benefits keep up with group inflation differs across the programs and their targeted groups, depending on both the ways in which the benefits are adjusted for price changes and the spending patterns of the various groups.

Keywords: cost of living adjustment, social security, inflation, transfer programs, Social Security and Public Pensions, Government Policy, Provision and Effects of Welfare Programs, Price Level, Inflation, Deflation

JEL Classification: I38, H55, E31

Suggested Citation

McGranahan, Leslie and Paulson, Anna L., How Do Benefit Adjustments for Government Transfer Programs Compare with Their Participants’ Inflation Experiences? (November 1, 2011). Economic Perspectives, Vol. XXXV, No. 4, 2011; FRB of Chicago Working Paper No. 4Q/2011. Available at SSRN: https://ssrn.com/abstract=1959455

Leslie McGranahan (Contact Author)

Federal Reserve Bank of Chicago ( email )

230 South LaSalle Street
Chicago, IL 60604
United States
312-322-5023 (Phone)
312-322-2357 (Fax)

Anna L. Paulson

Federal Reserve Bank of Chicago ( email )

230 South LaSalle Street
Chicago, IL 60604
United States
312 322 2169 (Phone)

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
21
Abstract Views
325
PlumX Metrics