Examining the Relationship between Public Policies: AFDC and Medicaid

Abstract

Why is it that changes in one program area often coincide with similar changes in other programs. Saundra Schneider investigates three possible linkages: causal interdependencies; common environmental influences; and program-specific factors that are correlated across Programs. Sbe develops a model to test these three linkages by analyzing state-level data on the AFDC and Medicaid Programs. Her empirical results demonstrate the overall relationship between AFDC and Medicaid and attribute it to an asymmetric causal influence as well as the two programs' dependence on their respective recipient populations. Her findings have important implications for understanding the structure and evolution of social welfare policies in the American states.