Impact of administrative burden on inappropriate payment error: a blessing or a curse?

ABSTRACT In this study, we analyze the impact of eased surveillance on recipients’ unintended payment error rates and fraud related to the Supplemental Nutrition Assistance Program (SNAP). With the adoption of SIMPLIFIED REPORTING as part of the innovative reform of public service, recipients of SNAP only have to report their economic status over an extended period and in a simplified form to reduce the administrative burden of SNAP clients. But reducing administrative burden in the social security policy field faces the criticism that it can increase the possibility of fraud. Despite myths that reduced administrative burden can cause fraudulent behavior, there is no empirical evidence. By running several empirical models including a panel fixed effect model using 11-year state panel data, we conclude that an eased Simplified Reporting does not increase fraudulent behavior, but rather it helps clients to receive relevant benefits from the government.