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An Endogenously-Switching Ordered-Response Model of Information, Eligibility and Participation in SSI

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  • Hill, Daniel H

Abstract

A model incorporating SSI participation, information and perceptions of program eligibility is developed and estimated using data from the 1980 PSID. The model assumes the participation decision process begins in an uninformed regime and switches to an informed regime if the perceived benefits are sufficiently high. In this informed regime individuals participate if perceived benefits exceed perceived costs. We find that the acquisition of information is responsive to actual program generosity just as is participation itself. Faulty information, which may be the proximate cause of low participation rates, is apparently, in part, a consequence of low perceived net benefits. Copyright 1990 by MIT Press.

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  • Hill, Daniel H, 1990. "An Endogenously-Switching Ordered-Response Model of Information, Eligibility and Participation in SSI," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 368-371, May.
    • Handle: RePEc:tpr:restat:v:72:y:1990:i:2:p:368-71
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    Cited by:

    1. Todd Elder & Elizabeth Powers, 2006. "Public Health Insurance and SSI Program Participation Among the Aged," Working Papers wp117, University of Michigan, Michigan Retirement Research Center.
    2. Jan Willem Nijenhuis, 2021. "Estimation of ordered probit model with endogenous switching between two latent regimes," 2021 Stata Conference 22, Stata Users Group.
    3. Todd E. Elder & Elizabeth T. Powers, 2004. "SSI for the Aged and the Problem of 'Take-Up'," Working Papers wp076, University of Michigan, Michigan Retirement Research Center.
    4. Yelowitz, Aaron S, 2000. "Using the Medicare Buy-In Program to Estimate the Effect of Medicaid on SSI Participation," Economic Inquiry, Western Economic Association International, vol. 38(3), pages 419-441, July.
    5. Todd Elder & Elizabeth Powers, 2007. "A Longitudinal Analysis of Entries and Exits of the Low-Income Elderly to and from the Supplemental Security Income Program," Working Papers wp156, University of Michigan, Michigan Retirement Research Center.

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