If you have a MTW system in which you receive cash instead of goods, you will reduce the problems associated with the MTW system but not eliminate it.
(a) Will still be a problem. The labyrinthine bureaucracy of means-testing ensures that agents do not have enough information to know how much they can claim. Ideally, you want to make reduce the information strain on recipients because that will ensure efficiency. Transaction costs include information asymmetry, and in an MTW system, information asymmetry is always weighted against the recipients who do not really understand the ins and outs of […]
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