An important source of errors in transfer payments programs is the fraudulent misreporting of earnings received by recipients. We propose a model of the recipient's decision to report income and the expected penalties if caught engaging in fraud. We discuss several features of the detection and...

Population aging and changing family patterns have made elder care an important issue. In 1994, German law-makers enacted a major reform in the country' s long-term care policy, the Dependency Insurance Act (DIA). How, and in what way, will the relative use of formal and informal long-term care...