The original proposal was formulated around three major topics. For all three topics, the research objectives met at the outset of proposal have been met.
On the measurement of consumption (Part I), we have created a registry-based measure of consumption that maximizes the potential of the granular data on income, assets and other resources available from administrative registers. The research article "Studying Consumption Patterns using Registry Data: Lessons From Swedish Administrative Data" summarizes the construction of this measures, provides descriptive results how consumption relates to income and illustrates the power of this measure for applied research relative to other measures of consumption (from National Accounts or consumption surveys).
On the evaluation of differentiated social policies with heterogeneous agents (Part II), we have developed a framework (1) to use consumption, consumption responses and other choice behavior to uncover heterogeneity in the value of social insurance; (2) to evaluate differentiated social policies with heterogeneous agents, in particular on the optimal timing of UI benefits over the unemployment spell and on the design of retirement benefits depending on employment histories; (3) to evaluate social policies when allowing for choice in a context with moral hazard, in particular on the design of a minimum mandate with the option for more comprehensive coverage, and in a context with behavioral frictions.
On the drivers of heterogeneity (Part III), we have made important progress in understanding the drivers of heterogeneity underlying insurance choices, and the importance of risk and frictions in particular, and how that affects optimal policy design. We have been working on two major applications: the first is the option to buy comprehensive UI on top of a basic coverage plan in Sweden, the second is the deductible in health insurance in the Netherlands. We have also performed conceptual work on the underlying identification of risk perceptions and risk types and on the welfare analysis when both sources of heterogeneity underlie individuals' behaviour.
We have extended the analysis in unforeseen ways, but very much in the spirit of the objectives initially set out. First, while the main focus has been on the design of social insurance and the corresponding transfers in particular, the welfare state also interferes through other interventions. These interventions are often targeted and thus the heterogeneity in risks that individuals are subject to becomes even more central for policy design. We have been studying how predictable long-term unemployment is and how its determinants change during the unemployment spell and over the business cycle. Second, the need for social insurance, including the need for appropriate healthcare, has been very much confirmed during the Covid crisis. We have studied the heterogeneity in impact of Covid along socio-economic dimensions, in particular studying how the income gradient in mortality has changed.
My updated CV includes an updated list of the published papers and working papers. The link is here
http://personal.lse.ac.uk/spinnewi/cv.pdf(opens in new window).
