Welfare generosity: The importance of administrative efficiency, community values, and genuine benevolence

Abstract

Using 1988-1991 state-level data, a public expenditure model is estimated for benefits paid through the Aid to Families with Dependent Children (AFDC) programme. The paper investigates whether differences in programme efficiency, community attitudes, perceptions of the effects of AFDC on recipient behaviour, and tastes for redistribution explain the variation in public support for welfare across states.