K. W. Scholz

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Long-term care represents one of the largest uninsured financial risks facing the elderly in the United States. We present evidence of supply side market failures in the private long-term care insurance market. In particular, the typical policy purchased exhibits premiums marked up substantially above expected benefits. It also provides very limited(More)
We study the implications of customs union formation for multilateral tariff cooperation. We model cooperation in multilateral trade policy as self-enforcing, in that it involves balancing the current gains from deviating unilaterally from an agreed-upon trade policy against the future losses from forfeiting the benefits of multilateral cooperation that(More)
Providing remedial (also known as developmental) education is the primary way colleges and universities cope with students who do not have the academic preparation needed to succeed in college-level courses. Remediation is widespread, with nearly one-third of entering freshman taking remedial courses at a cost of at least $1 billion per year. As such, it(More)
Do retirement savings policies – such as tax subsidies or employer-provided pension plans – increase total saving for retirement or simply induce shifting across accounts? We revisit this classic question using 45 million observations on wealth for the population of Denmark. We find that a policy’s impact on wealth accumulation depends on whether it changes(More)
Federal and state governments spend well over a billion dollars a year on programs that encourage employment development in disadvantaged labor markets through the use of subsidies and tax credits. In this paper we use an estimation approach that is valid under relatively weak assumptions to measure the impact of State Enterprise Zones (ENTZs), Federal(More)
The classic model of Becker (1965) suggests that labor supply decisions should be analyzed within the broader context of time allocation and market good consumption choices, but most empirical work on policy has focused exclusively on measuring impacts on market work. This paper examines how income taxes affect time allocation during the entire day, and how(More)
Empirical studies of peer effects rely on the assumption that peer spillovers can be measured through observables. However, in the education context, many theories of peer spillovers center around unobservables, such as ability, effort or motivation. I show that when peer effects arise from unobservables, the typical empirical specifications will not(More)
This paper studies the Homeowner Affordability Modification Program (HAMP), a 2009 federal program reducing delinquent homeowners mortgage payments to 31 percent of monthly income. To assess the program I propose and estimate a structural model of mortgage default using program results. The model allows for income, house prices, and exit preference shocks(More)
Estimates imply that only one-third of elderly persons who are eligible for food stamps actually participate in the program, which is half the rate that exists among younger people. This study investigates potential reasons for the relatively low take-up rate among the elderly. Analyzing new data, we conclude that the low take-up rate is not explained by(More)